As sugarcane is expected to have a bumper harvest this time, Government has asked the mills to advance the cane crushing. Mills are generally operated for crushing between Dushhera and Diwali, in the second half of October. This time cane crushing would take place in the beginning of October, as suggested by the govt. Sugar prices increased by 3% despite lower tax burden of 5% which previously was 8%. In order to take input credit under GST, sugar traders stopped buying sugar in June and off loaded the stocks. This dried up supply and hiked up prices. Prices are expected to be stable as there would be enough supply in the market in this harvest season.
First published on: 25 Jul 2017, 21:51 IST
