According to estimates, sugar output in the country may come down by 25 per cent to 21-22 million tonnes in the 2008-09 (October-September) season from 28 million tonnes last year.
"Prices are currently holding low because of the release of 5 million tonnes from the buffer stock," said B J Maheshwari, company secretary, Dwarikesh Sugar.
The current high stock at around 15 million tonnes needs to be exhausted so that the fresh output and fresh demand could match to have a balancing impact on prices, he added.
Sugar exports are increasing with 4.2 million tonnes shipped so far this year compared with less than 3 million tonnes last year. Sugar exports are likely to increase next year.
"Anticipating a jump in sugar prices is not justifiable at this point of time as sowing is not yet over for the next crushing season beginning October. Yet, an upward move cannot be ruled out, especially when farmers are reportedly shifting to other remunerative crops," said Sanjay Tapriya, director (finance), Simbhaoli Sugar Mills.
