Where then, are sugar prices headed now?
Tulsian sees some more respite, “Domestic price decline is mainly on account of liquidation of inventory by mills. Domestic realizations will be seen inching up by Rs 2 in the next fortnight.” he told CNBC-TV18 in an interview. Sudakshina Unnikrishnan of Barclays believes the downside risk for sugar prices is limited from current levels. “The mood remains ‘very bearish’ for sugar prices at the moment. And one needs to see fresh demand for raw imports before prices can move up,” she says. Unnikrishnan sees raw sugar prices at 17-20 cents/ pound. Shorter term range for ICE Futures is seen between 17 20 cents/ pound. Sugar producers’ outlook Narendra Murkumbi, MD of Shree Renuka Sugars said in an interview to CNBC-TV18 that he doesnt see prices going back to recent highs anytime soon. In fact, he sees a bottoming of prices. Murkumbi sees a strong case for correction in FY11. While on one hand FY11 poduction is seen at 22 million tons, on the other there is 4 million tons of imported sugar
