Drought situation to hit sugar output hard in Maharashtra and Tamilnadu

Even as the International Sugar Organization (ISO) has raised its forecast for 2018-19 global sugar surplus to 1.83 million tonnes, up from its previous estimate of 641,000 tonnes, thanks to increased production in India and Thailand as well as a diminished outlook for sugar consumption, Maharashtra and Tamilnadu in India are reporting huge output cuts […]

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Sugar prices recovering, but unlikely to sustain momentum on continued oversupply – ICRA

The sustainability of recovery in sugar prices recently to around Rs. 33,000-33,500/MT (ex-mill UP) from Rs. 31,000/MT in April 2019 seems uncertain given the significant oversupply conditions in the domestic market, ratings agency ICRA said in a note. The expectation of a decline in the cane availability in the key sugar producing state Maharashtra for […]

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Latest WASDE global agriculture output projections for April

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The latest World Agriculture Supply and Demand Estimate report from the U.S. Department of Agriculture (USDA) gave the following projections for various crops for 2018/19. World 2018/19 wheat supplies are raised 2.1 million tons due mainly to increased beginning stocks that largely reflect multi-year revisions for Iran. Global production and exports are each reduced fractionally, […]

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Government steps in to boost India’s ethanol capacities during sugar surplus

A government decision to approve Rs. 2790 crore interest subvention for extending loan amount of around Rs. 12,900 crore by banks to India’s sugar mills for augmentation of ethanol distillery capacities is a positive given the oversupply conditions, ratings agency ICRA said. The move is likely to address the current supply-demand imbalance over the medium […]

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COMMENTARY – Higher sugar MSP positive, but domestic surplus situation overhung

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Authors: Ms. Khushbu Lakhotia, Senior Analyst, Corporate Ratings, India Ratings and Research (Fitch Group) & Mr. Jinesh Rajpara, Analyst, India Ratings and Research (Fitch Group)  The recent hike by Rs. 2 per kilogram (kg) in the minimum selling price (MSP) of sugar to Rs.31 per kg could generate an additional income of Rs.30-35 billion for […]

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