Indian sugar mills association

Prices may rise 8% in season 2020: Crisil

Date:	06 Sep 2019

Source:	The Financial Express

Reporter:	PTI

News ID:	42624

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Mumbai: Sugar prices are expected to rise by 8 percent to Rs 33-34 per kg in sugar season (SS) 2020 following a decline in cane acreage in Maharashtra and parts of Karnataka due to extreme weather conditions, according to a report.

A decline in cane acreage due to extreme weather conditions in Maharashtra and parts of Karnataka is expected to result in a 10 percent decline in sugar production, CrisilNSE 1.65 % Research said in a report.

Additionally, it said, a 20 percent rise in exports is expected to lead to declining of inventories which is likely to trigger a rise in sugar prices.

Crisil expects sugar prices to rise 8 percent to Rs 33-34 per kg in SS 2020 through September 2020.

Sugar season or the marketing year begins from October 2019 to September 2020.

The report further said that sugar exports, estimated at 3.8 million tonne for SS 2019, are expected to rise to 4.5 -5 million tonne in SS 2020, due to the lump sum export subsidy announced.

A spurt in ethanol sales volumes and realisations, and an expected rise of 8 per cent in sugar prices, would further improve mill profitability in SS 2020, it added.

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