The sale of sugar is expected to touch roughly around 22-23 lakh tonne (LT) in the month of September and October due to festive season which is around the corner. As per information provided by Indian Sugar Mills Association (ISMA), this is the time when buyers take extra sugar and extra demand is witnessed coming from the market.
This extra demand will not have any big impact on the prices because government has taken several steps for the same in the last 3-4 months. There is extra sale pressure amongst some of the sugar mills as the government has recently came out with the notification under which the sugar mills cannot keep more than 37% of their sugar availability in the current season as on September 30 and 24% at the end of October.
ISMA had estimated production of 232.6 LT of sugar in the season 2016-17. This is about 18-19 LT less than the current 2015-16 SS production of around 251 LT.