Bidders bullish on sugar in Maha; prices likely to go up

Maharashtra has received encouraging response from sugar bidders from neighbouring states today, which is likely to increase the prices of the commodity in the wholesale and the retail market.
The bidding was held in Pune yesterday, in which sugar from Maharashtra received bids from Madhya Pradesh, Rajasthan and Gujarat, ranging from Rs 2,350 to Rs 2,400 per quintal.
Yesterday, sugar in the wholesale market was quoted at Rs 2250 to 2300 per quintal.
Sugar production in the upcoming crushing season is anticipated at 90 lakh MT. Thus, sugar mill representatives have demanded a change in the FRP policy (Fair and Remuneration Price) and asked the government to allow a greater percentage of blending of ethanol (by-product of sugarcane) in petrol and diesel.

President of Sugar Merchant Association Vijay Gujarathi said the effect of rise in prices of sugar will be seen in the market from tomorrow.
"Unexpected bidding rates that were received will help boost the sugar industry slightly as they (traders) will get an additional Rs 150 to Rs 200 per quintal," Gujarathi said.

He claimed that steps taken by the Centre to give a boost to the industry has reflected in the market and thus traders quoted higher prices.
The Centre had recently announced a package of Rs 6,000 crore to boost the sugar industry.
The amount will be distributed to farmers as due difference of FRP that was between Rs 2,200 to 2,500 per quintal during the last crushing season.