Sugar prices have been gaining both in India as well as globally. Tarun Sawhney, VC & MD of Triveni Engineering, spoke to CNBC-TV18 about India's sugar output and production outlook.
"As per the USDA report that came in yesterday, they are looking at the Indian output down by 8.50 percent for 2019-2020. The number that they have come out with is 30.3 million tonne," Sawhney said on Thursday.
With regards to the concerns related to the sugar industry, Sawhney said, “When we look at next year’s production coming in at around 30 million tonnes that is going to be a lower production, however, I want to caveat by saying that - those production numbers are still going to be more than what the country will consume. So there is a chance of net addition to stocks which is a cause of concern."
On the domestic prices, Sawhney said, “The release for the month of May which is the high consumption month given the fact that the build-up for the summer happens now and processing companies consumed their sugar at this point of time so that release was considered by many to be a just little bit lower and you have seen a small build-up in prices which is, of course, a very welcome at a point in time when cane arrears have been building up. Now going forward we do have excess stock in the country, so I don’t see any substantial long term increase in prices.”