Sugar prices fall to lowest level in 28 months owing to distress sales

Meanwhile, a sharp fall in sugar prices in global markets has made exports almost impossible

Sugar prices have declined to their lowest level in 28 months owing to distress sales by mills on account of storage problems.

Storage problems are because of a production glut this season.

With the output being 30 million tonnes by mid-April and 227 mills still in operation, the industry is now forecasting production at a record 31.5 million tonnes for the season 2017-18 as against 20.3 million tonnes during last season (October-September).

At the beginning of the crushing season, i.e. October last year, the Indian Sugar Mills Association (ISMA) had estimated sugar output at 25.1 million tonnes, and later revised