Mills must produce raw sugar for now: Traders tell Maharashtra

PUNE: With international sugar prices ruling at a decade’s low due to surplus supplies, sugar millers from Maharashtra have asked the state government to make it mandatory for mills to produce raw sugar during the first two months of the crushing season beginning October 1.

“As there is no demand for Indian white sugar, making it mandatory for mills to produce raw sugar during the first two months of the crushing season can help the sector,” said BB Thombre, president, Western Indian Sugar Mills Association.

The industry was, however, not able to fulfill the earlier mandatory target of exporting 20 lakh tonnes of sugar during 2017-18, on the grounds that it was not financially viable. It has now demanded an increase in incentives given to sugarcane growers.


The Union cabinet, which was expected to take a call on export policy last week, is now likely to discuss the proposal in the current week. The decision expected to be taken by the Indian government is also being closed tracked by investors in international futures. Global prices are likely to touch 10 cents per pound if India begins exports.

A section of the trade has also demanded doing away with the monthly sugar release mechanism to boost exports. Sugar broker Abhijit Ghorpade said, “If the release mechanism is removed, coastal states can export about 6-7 million tonnes of sugar. Uttar Pradesh mills can take care of the domestic market requirements.”