Virendra Singh Rawat
Lucknow / Mar 3, 2021
Amid bumper stockpiles, India’s sugar output has now jumped by 20% from 19.5 million tonnes (MT) to nearly 24 MT in the ongoing 2020-21 crushing season.
According to the Indian Sugar Mills Association (ISMA), Maharashtra has logged sugar production of 8.5 MT compared to 5 MT last year during the corresponding period. In Uttar Pradesh, 109 of the total 120 mills are currently in operation with the state tally standing at about 7.5 MT, which is roughly at the same level as last year.
Citing market reports, it said ex-mill sugar prices in most states are under pressure and showing downward trend. The average prices in Tamil Nadu are hovering between Rs 3,200-3,225 per quintal (100 kg), while in the Northern states, the prices are in the range of Rs 3,160–3,180 per quintal.
These prices are Rs 80-100 per quintal lower than what was prevailing last year during the corresponding period. “This is not a good sign as low sugar prices, much below the cost of production for last several months, have adversely affected the liquidity of mills and their ability to pay the free and remunerative price (FRP) to farmers. It is feared that if such situation persists then arrears will jump to uncomfortable levels,” ISMA noted.
The Association has suggested for the upward revision of the minimum selling price (MSP) of sugar, which was last revised two years back when the FRP of cane was at Rs 275 per quintal. “Since, the government has already increased the FRP by Rs 10 per quintal for the current year, there is an urgent need to increase the MSP of sugar to Rs 34.50 per kg.”
On the export front too, mills are facing problems of shortage of trucks and containers as well as adequate availability of vessels at the ports. “We hope for an early solution to these problems, especially as around 3.2 MT of export contracts have been entered into at the end of Feb 2021,” an ISMA communiqué read.
No comments:
Post a Comment