As per a leading business daily, sugar mills in the southern region have suspended operations, thereby trimming the overall crushing period. It may be noted that recently the mills in Uttar Pradesh and Maharashtra had also stopped cane crushing within less than seven months of the sugar season. The mills have halted the production on account of fall in acreage, lower productivity and higher cane prices. Sugar production from the three southern states is estimated to be around 4 million tonnes till mid-April, about 38% lower than last year. Maharashtra, Uttar Pradesh and Karnataka produced more than 73% of the domestic output of 26.3 million tonnes last year.
The lower sugar production would result in further rise in sugar prices, which recently touched a three-year high. Renuka Sugars and EID Parry are trading higher currently.
SOKHI :-)
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