Sugar prices set to firm up further for consumers December 31, 2009Posted by Agro-Fundoo in Sugar.
With sugar mills facing cane shortage, prices of sugar are likely to firm up further in the retail market.
Most of the sugar mills in Uttarakhand and western Uttar Pradesh are currently running at 60 to 70 per cent capacity due to the shortage of cane.
In order to overcome the shortfall, sugar mills had increased the procurement price of sugarcane by Rs 5 to Rs 10 during the past two to three days, mill sources said. Earlier, they were paying Rs 220-225 to farmers, but now they are giving Rs 230-235.
After touching low at Rs 3,300 per quintal last week, prices of sugar have again bounced back to Rs 3,750 per quintal today. This upward trend would continue for some more time till the prices settle at Rs 4,000 per quintal, market sources said.