PUNE: Sugar prices, already under pressure, are expected to decline further from November when sugar mills will produce the sweetener on a large scale. Full-fledged sugar production in Maharashtra, the top producer, is expected to begin only from the first week of November although the state government wanted to start it from October 15.

Karnataka and Tamil Nadu have begun crushing operations while Uttar Pradesh mills crush cane from November. A higher quota for open market and increased supply are likely to keep sugar prices under pressure. "After the government announced a quota of 40 lakh tonne for October and November, sugar prices decreased by Rs 1.5/kg in the last ten days. Mills are yet not selling the October quota sugar as the September quota is yet not over," said Ashok Jain, president, Bombay Sugar Merchants' Association. He added that prices may decrease further after the first week of November.

The Union government has announced quota for October and November, deviating from the system of announcing quota for three months. It is believed that the Union government might want to take sugar production in the new season into consideration before announcing the December quota.

Due to insufficient September rainfall, the Maharashtra government advanced crushing operations by 15 days from November 1 to October 15.

"Some mills will crush cane before Dusserha. But as the migrating harvesting labour will mostly reach factory sites after celebrating Dussehra, full-fledged sugar production can be expected only from November," said Rajendra Yadav, managing director, Sakhar Maharshi Shankarrao Mohite Sahakari Sakhar Karkhana, Akluj in Solapur district.