Mumbai, October 2
Record sugarcane production in Maharashtra and Uttar Pradesh is expected to result in lower sugar prices during the forthcoming festival season.

According to information available from the State Sugar Directorate, the nationwide output of the sweetener is expected to cross 25 million tonne this year. The total sugar stock in the country is expected to touch a record 86 lakh tonne as of September 30, officials say.

Good monsoon has resulted in the main sugar producing areas of Maharashtra reporting a bountiful crop. “Farmers have begun harvesting their crops and the crushing season will begin in the next few days,” an official of the state sugar federation said.

Politicians in Maharashtra are demanding that the government should allow exports in order help mills reduce their inventory. Several politicians have met Union Agriculture Minister Sharad Pawar to get the government relax norms for sugar exports.

Sugar prices hovered around Rs 2,969 per quintal at the Kolhapur wholesale market yesterday. However, contracts for November are being done at Rs 2,898 per quintal.