(FE)
Sugar millers in Uttar Pradesh are caught between the devil and the deep blue sea this year. While on the one hand they are looking at the highest ever sugar production along with vital gains in the overall recovery of sugar and yield of sugarcane, on the other hand they are already witnessing a free fall in sugar prices, which is cutting into their margins in a big way. Within almost 5 weeks of starting the season, the prices have tumbled by approximately Rs 300 per quintal at the wholesale market, setting millers on a panic already.
The Uttar Pradesh Sugar Millers Association has, in a letter to the state government, drawn its attention to the difficulty being faced by them and has requested it for early remedial measures. “Sugar prices continue to fall at an alarming rate and are today just around Rs 3,400 per quintal (ex-factory) and market analysts do not see any betterment and further downfall is highly probable,” says the letter, adding that to add to the cash flow problem of the mills, molasses prices have also continued their fall and free sale molasses are currently finding no buyers even at a price of under Rs 40 per quintal.
