Simbhaoli Sugars logo

SIMBHALS - Simbhaoli Sugars News Story

₹13.45 0.6  4.7%

Last Trade - 17/05/21

Sector
Consumer Defensives
Size
Micro Cap
Market Cap £5.37m
Enterprise Value £13.8m
Revenue £135.2m
Position in Universe 2060th / 3112

India's sugar surplus set to rise as output to reach a record this year - assoc

Mon 2nd April, 2018 10:48am
* Sugar surplus to rise to 5.3 mln T for 2017/18 crop year -
WISMA
    * Surplus above previous estimate of 4.5 mln T from national
assoc.

    By Rajendra Jadhav
    MUMBAI, April 2 (Reuters) - India's sugar surplus could
swell to 5.3 million tonnes as production for the 2017/18 crop
year is set to surge to a record 30.3 million tonnes as output
rises from the top two producing states, the Western India Sugar
Mills Association (WISMA) said.
    India's surplus will rise as output from the state of
Maharashtra, the country's second-biggest producing state, is
expected to jump to 10.6 million tonnes, from last year's 4.2
million tonnes, B.B. Thombre, the president of WISMA, said on
Monday.
    In the northern Indian state of Uttar Pradesh, India's
biggest sugar producing region, output is forecast to rise to
10.8 million tonnes, said Thombre, up from 8.8 million the
previous year. 
    The Indian Sugar Mills Association (ISMA), the national
industry association for the world's second-biggest sugar
producer, in March forecast a surplus of 4.5 million tonnes
following output of 29.5 million tonnes for the marketing season
that started on Oct. 1.  urn:newsml:reuters.com:*:nL4N1QP2SF
    The higher-than-expected surplus could pressure local prices
 SUG-ARMKHP-NCX  even lower even after they fell last week to
their lowest since December 2015.
    Globally, prices  LSUc1  are trading near their lowest in
2-1/2 years and an expected surge of Indian exports after the
country revoked its export tax last month should mean prices may
drop even further.
    WISMA is revising its production numbers as mills are still
processing sugar cane in both Uttar Pradesh and Maharashtra
though the processing season typically ends in March. 
    "Sugar cane yields are much better than last year. Still
many mills are operational in Maharashtra and Uttar Pradesh and
they will continue crushing for a few more days," said Thombre.
    Last week, India mandated that mills must export 2 million
tonnes of sugar to lower inventories and support local prices.
 urn:newsml:reuters.com:*:nL3N1RB27L
    On March 20, the country also scrapped its 20 percent sugar
export tax as an added incentive for mills to export.
 urn:newsml:reuters.com:*:nL3N1R23GS 
    Domestic sugar prices have fallen 16 percent in the past six
months. In addition to the oversupply amid the rising
production, mills were aggressively selling the sweetener to
make payments to sugar cane farmers.  urn:newsml:reuters.com:*:nL3N1PB2LR

 (Reporting by Rajendra Jadhav; Editing by Christian
Schmollinger)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-6180-7153 ;
Reuters Messaging:
rajendra.jadhav.thomsonreuters.com@reuters.net))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.