Sugar price hits 7-year high on higher demand from stockists

Industry estimates India's sugar production to be 23.5 million tonnes this year

Sugar price hit the highest in seven years following sudden pick up in lifting from bulk consumers and lower production estimates this season.

Steadily approaching towards Rs 40 per kg in the wholesale Vashi market, the benchmark Sugar M 30 variety closed on Tuesday at Rs 39.35 per kg. The sweetener has jumped by over 3 per cent in the last 10-days.

"Ex-mill sugar prices which dropped by Rs 2 to 3 per kilo since the second week of November 2016 after demonetisation have started improving and are now at the levels seen a couple of years ago," said a senior industry