Mills from Maharashtra had requested the government to give a higher quota to enable them to clear inventories. So, they are expecting quota for November to be more than 2.2 million tonnes (mln tn).
The government has imposed a cap on monthly sale of Sugar by mills to regulate supply in the market and boost prices. For October, the government allocated a total of 2.2 mln tn for sale in local markets.
The downward revision in Sugar production estimate for 2018-19 (Oct-Sep) by the Indian Sugar Mills Association also weighed on prices.
Earlier this week, ISMA scaled down its forecast for the country’s Sugar output in 2018-19 to 31.5-32.0 mln tn from 35.0-35.5 mln tn projected earlier, as the cane crop in key producing states was hit by adverse weather conditions.
Diversion of cane towards ethanol was also a key factor for the downward revision in estimate. The Sugar production estimates for 2018-19, after considering this (Sugarcane) diversion to ethanol.
Get detailed equity Service provider right here at BSE & NSE. We provide Indian Stock market service like Equity, MCX Service, HNI& Currency Service | Ripples Advisory Private Limited