India Sugar
Dn in key mkts on weak demand; up on ICE tracking crude
This story was originally published at 22:14 IST on 8 August 2024
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By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra fell today due to muted demand, said traders. The downtrend in prices is likely to continue in Uttar Pradesh, while in Maharashtra the trend could reverse if there is demand ahead of festivals, they added.
Most mills in central Uttar Pradesh cut prices by 20–30 rupees per 100 kg today, while a few of them also cut prices by 30–40 rupees per 100 kg due to poor demand at increased price levels, said Naresh Gupta, a local trader from north India. The downtrend in prices will continue as mills will have to liquidate the stocks to meet the sales quota before the month ends, Gupta said.
The resale markets in the states too cut rates by 15–20 rupees per 100 kg due to poor demand, said Gupta.
The sweetener's prices in Maharashtra fell by 5 rupees per 100 kg today, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Sweetener prices in Maharashtra increased over 100 rupees after the release of the sales quota for August. The Centre set a sales quota of 2.2 mln tn for the month, which was deemed insufficient, and the mills in the state raised rates at the time.
Prices, however, might increase if there is demand in the wake of falling prices, Kuvadia said.
The following are the highlights of sugar prices in the domestic market today:
-Down 5 rupees at 3,842-3,962 rupees per 100 kg in Mumbai
-Down 5 rupees at 3,760-3,820 rupees per 100 kg in Kolhapur
-Down 20-30 at 3,730-3,900 rupees per 100 kg in central Uttar Pradesh
-Flat at 3,955-3,980 rupees per 100 kg in western Uttar Pradesh
At 2028 IST, sugar prices on the Intercontinental Exchange were up 3% at 18.67 cents, tracking crude oil prices on the NYMEX. Global sugar prices rose, tracking gains in crude oil prices. Strength in crude oil prices encourages diversion of sugarcane for ethanol production, which decreases its supply for production of the sweetener. End
US$1 = 83.96 rupees
Edited by Tanima Banerjee
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