Steep decline in recovery major challenge for sugar mills this season

Despite an increase in sugar prices, mills fear that the decline in recovery may hit their profit margins and thereby hinder their cane payment capabilities

While a marginal increase in sugar price over the last two days revived sentiment across the industry, the sharp decline in recovery continues to pose a challenge for mills this season.

Average realisation for sugar mills has increased by Re 0.5 – 1 to Rs 34-35/kg (M30 in Uttar Pradesh and Rs 31.70/kg S30 in Maharashtra). Government has fixed the minimum selling price (MSP) at Rs 31 per kg. In retail, however, unbranded sugar is sold at Rs 44-46/kg.

Despite an increase in sugar prices, mills fear that the decline in recovery may hit their profit margins and thereby hinder