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Informist, Monday, Aug 12, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets in Uttar Pradesh fell significantly today as demand was poor owing to cooler weather amid heavy rainfall in some parts of the country, said traders. Prices of the sweetener in Maharashtra were steady despite poor demand, they said.

Some mills in west Uttar Pradesh cut sugar prices by 40–50 rupees per 100 kg, while some mills, which were at higher price levels, cut rates by 60–65 rupees per 100 kg owing to poor demand. Mills in central parts of the state cut prices by 20–25 rupees per 100 kg, said Naresh Gupta, a local trader.

In the resale markets, too, prices fell by about 20–30 rupees per 100 kg as they were unable to sell the stocks in the pipeline, Gupta said. Prices are likely to fall further as mills are under pressure to sell to meet the sales quota for August, Gupta said. After the release of the sales quota for August, mills across the country raised prices as the quota of 2.2 mln tn was considered insufficient, but unsold stocks from the previous month offset fears of reduced sugar availability this month, he added. 

Sugar prices in Maharashtra were steady despite poor demand as mills expect demand to rise ahead of the start of the festival season, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices might rise if demand improves ahead of the upcoming festivals, but during the next 2-3 days prices are likely to remain at the current level, Kuvadia said.

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

-Flat at 3,842-3,962 rupees per 100 kg in Mumbai

-Flat at 3,760-3,820 rupees per 100 kg in Kolhapur

-Down 20–25 rupees at 3,710-3,875 rupees per 100 kg in central Uttar Pradesh

-Down 40–50 rupees at 3,915-3,930 rupees per 100 kg in western Uttar Pradesh

At 1536 IST, sugar prices on the Intercontinental Exchange were up 0.1% at 18.55 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 = 83.97 rupees

Edited by Rajeev Pai

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