Trade body Indian Sugar Mills Association (ISMA) has projected increase in sugar off take and improvement in market sentiments in next few weeks as it believes that the government has decided not to continue with stock holding limit on traders beyond December 31. A release from the trade body said, "Sugar season 2017-18 SS started with an opening balance of around 38.76 lac tonnes, which is the lowest ever in the last several years. With an anticipated normal sugar production of about 251 lac tonnes and imports of about 2.85 lac tonnes (of whites equivalent), the total availability of sugar in the current season is estimated at 292.61 lac tonnes. Against this, domestic consumption of sugar is estimated at around 250-252 lac tonnes (growth of around 2.5%). As such, the closing balance on 30th September 2018, is expected to be about 40-42 lac tonnes i.e. almost equal to the opening balance of this year."
The stock holding limit on traders implemented since April 2016 did curtail some of the buying by traders because of which the pipeline has become almost dry. "With the Government clearly deciding not to continue with stock holding limit on traders beyond 31stDecember 2017, there will be buying interests to restock the pipeline, which will give a philip to the sugar off-take. If however, the Government agrees to withdraw the stock holding limit earlier, the demand will surely improve the market sentiments," said ISMA.