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Informist, Tuesday, Jul 30, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra rose today, with the sales quota for August seen to be lower, amid anticipation of firm demand ahead of festivals, traders said. The monthly sales quota for August was set at 2.2 mln tn, 200,000 tn lower than July's figure.

Mills in Uttar Pradesh increased prices by another 5–10 rupees per 100 kg today, but the demand was sluggish at the current price levels as rates in Maharashtra were lower, said Naraesh Gupta, a trader from north India. Moreover, due to reduced availability of trucks due to the current "kanwar yatra", demand for the sweetener in the state is low. 

Prices rose by about 170 rupees per 100 kg after the release of the sales quota for August, though the unfulfilled sales quota for July will also have to be met by Aug 15. Prices had fallen by about 140 rupees per 100 kg earlier this month, Gupta said. 

Prices of the sweetener in Maharashta rose by 10–20 rupees per 100 kg on firm demand from households as well as bulk consumers such as ice-cream and soft drink manufacturers, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to increase by another 10–15 rupees per 100 kg in the coming days, as the sales quota is deemed to be insufficient, Kuvadia said.

The following are the highlights of sugar prices in the domestic market today:

-Up 10–20 rupees at 3,840-3,920 rupees per 100 kg in Mumbai

-Up 10–20 rupees at 3,740-3,790 rupees per 100 kg in Kolhapur

-Up 5–10 rupees at 3,885-3,980 rupees per 100 kg in western Uttar Pradesh

-Up 5–10 rupees at 3,955-3,980 rupees per 100 kg in central Uttar Pradesh

At 2012 IST, the most-active October sugar contract on the Intercontinental Exchange was down 0.5% at 18.92 cents per pound. Global sugar prices fell, tracking losses in crude oil prices. A fall in crude oil prices discourages diversion of sugarcane for ethanol production, which increases its supply for production of the sweetener.  End

US$1 = 83.73 rupees

Edited by Rajeev Pai

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