After brief surge, sugar prices on decline again

With the average cost of production around Rs 3,600 a quintal, mills say their losses will widen

After a rebound, sugar prices have again started declining, due to the persisting supply glut.
 
The ex-factory price of the S-variety has dropped 6.5 per cent in less than two weeks, to trade currently at Rs 2,925. At the Navi Mumbai (Vashi) wholesale market, the benchmark
 
M-30 variety hit its lowest level this month on Wednesday at Rs 3,300 a quintal. The spot price is down two per cent after a recent peak of Rs 3,365 a quintal last Wednesday, after the central government offered an Rs 80-billion package to address the sector’s liquidity problem.
 
With the