Sugar availability narrows, early crushing next season may help supply
As of July 31, sugar mills held 90.58 lakh tonnes of stock, with the government allocating 22.5 lt for August sales. This may leave around 68 lt by month-end, raising concerns of tight supply amid festive demand. A further drop to 46 lt is projected by September end.
Sugar stock, held by mills as on July 31 was 90.58 lakh tonnes (lt), the government said in a notification while allocating 22.5 lt of quota to sugar factories for sales in domestic market during August.
This leaves a likely closing stock of about 68 lt at end of this month, which may create a tight situation amid festival demand ahead.
“Last year, the government had allocated 22 lt sugar in August and 23.5 lt in September. This year’s August quota is already higher and even if next month quota is kept at year-ago level, the closing stock on September 30 may be around 46 lt after considering 1-2 lt of fresh sugar production in Karnataka and Tamil Nadu during August-September,” a sugar company official said.
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Source : The Hindu Business line
