India: Good Sugar Harvest but not so Good News for Producers

Last year was a disaster for sugar producers in India because of the bad monsoon rain fall, production suffered quite a bit. As a result, the price went up and Indian consumers had to suffer from it. This time the harvest seems to be with a good potential and India will have surplus of sugar production.

The main reason is that there is a forecast of normal rainfall in the monsoon season. As a result, it will help the farmers and as a result, the price will not become abnormal. This is good news for the consumers but not so good news for the farmers and sugar mill owners. They are worried that if sugar is imported from other countries then the industry will suffer. So, sugar mill owners want that the Indian government create a barrier on imports of the commodity and this way the price will not decrease too much.