During the past one year, the sugar industry is facing with the problem of plenty worsened by huge imports. The industry mandarins are hoping for a growth in internal consumption to sustain demand and sales at least at current levels. Although the domestic market is not affected, the domestic consumption has shown a growth of three per cent, as reported by market sources. According to the Indian Sugar Mills Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF), the domestic consumption of sugar during October-June in the current sugar season increased by 3.2 per cent to 115.8 lakh tonne as against 112.2 lakh tonnes in the same period during the previous year. The three per cent growth may be welcome, but it is still too little to inspire a sense of confidence among the millowners. The immediate cause for concern is a closing stock of 136.1 lakh tonne higher than the stock levels on the corresponding date of the previous year. The rise in stock levels despite lower imports during the same period is disconcerting, as reported. |
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