Shares of 11 sugar firms were down by 0.66% to 7.82% at 11:18 IST on BSE, extending yesterday's slide after ISMA projected record sugar output in current year.
Dhampur Sugar Mills (down 7.82%), Dwarikesh Sugar Industries (down 6.14%), Triveni Engineering & Industries (down 6.29%), Sakthi Sugars (down 6.25%), Bajaj Hindusthan Sugar (down 4.03%), Balrampur Chini Mills (down 7.64%), DCM Shriram Industries (down 6.17%), Rana Sugars (down 5.79%), EID Parry (India) (down 1.33%), Simbhaoli Sugars (down 3.21%) and Shree Renuka Sugar (down 0.66%) edged lower.
The S&P BSE Sensex was up 84.08 points, or 0.25% at 33,117.17.
Increased sugar production outlook in India is likely to add to the concerns on excess global supplies and could pull downwards the prices of raw sugar.
In a press released issued on 7 March 2018, Indian Sugar Mills Association (ISMA) said that production of 295 lakh tonne in the current season will be 45 lakh tonne higher than the 250 lakh tonne of estimated domestic consumption. A part of this needs to be exported in the next 6 to 7 months within this sugar season itself, to reduce the burden of surplus sugar in the country, ISMA said. The sugar season runs from October to September.
Considering that 479 sugar mills are still crushing and also taking into the account higher yields reported from Maharashtra and Karnataka, the apex industry body revised its estimates for the current season to 295 lakh tonne of sugar. The sugar production upto 28 February 2018 was 230.5 lakh tonne.
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