As of 4 April, sugar prices were up by 8.8% over January; but they fell by 4.5%, as of 6 April, after this announcement. In the current season, lower output in Maharashtra and Karnataka and the southern states was the main reason for lower output. Still, a balanced market even in the next season (due to a shortfall in the current season) augurs well for sugar prices and for sugar mills. It has also called for a probe into the sale of government-owned sugar mills in 2010-11, according to news reports. If the new government implements a more stable pricing and operational environment, it can improve the longer-term outlook for UP-based sugar mills.

Source: Mint April 10, 2017 02:15 UTC