Bumper production subdues sugar prices

Price-wise sugar is going to taste sweet to consumers and bitter to the farmers in coming months in Gujarat as its prices are likely to remain subdued in near future following bumper production expected this year, according to leading market players.

"Prices of sugar have already come down to Rs. 1,300 - 1,320 per quintal from the peak of Rs. 1,900 at the onset of the season", said Gujarat State Federation of Co-operative Sugar Factories (GSFCSF) president Mansinh Patel.

Most factories in the state are continuing sugar cane crushing even now, indicating their production is in full steam which means the prices of sugar are likely to dip further in the days to come.

Currently, prices of Sugar S-30 are quoted at Rs. 1,300 to Rs. 1,320, while that of M-30

are hovering at Rs. 1,320 to Rs. 1,325, registering a decrease of Rs. 600 to Rs. 700 during the season.

Sugar production in the state is likely to increase by 22 to 23 per cent to 13 lakh metric tonne against the average of 11 lakh metric tonne. This bodes unwell for farmers who are not going to get higher prices for sugarcane.

Holding Central Government's policy responsible for the subdued trend in sugar market, Mansinh Patel wants the government to provide subsidy on exports by reducing the excise duty.

"Farmers should be given incentives for sugarcane crushing as being done in Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka. We have also demanded compensation to the farmers in case of weight and recovery loss," he added.