India Sugar
Steady in key markets; seen falling in days to come
This story was originally published at 21:05 IST on 13 August 2024
Register to read our real-time news.Informist, Tuesday, Aug 13, 2024
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were largely steady, said traders. Prices in Uttar Pradesh are likely to fall in days to come, while in Maharashtra, prices are likely to remain at the current levels if demand does not pick up, they said.
Mills across Uttar Pradesh kept prices steady, except for a few ones in central Uttar Pradesh, cut prices by 20–30 rupees, said Naresh Gupta, a local trader from north India. In the resale market, prices fell by 10–15 rupees per 100 kg, he added.
Prices are likely to fall by another 30–40 rupees per 100 kg, as buyers are hesitant to stock up sugar due to falling prices and also as there is a selling pressure on mills to meet the quota for the month, Gupta added. 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.
Additionally, Gupta said that a possible price hike in ethanol produced from sugar will not have an impact on sugar prices, but if there is some relaxation in the policy of sugar diversion towards ethanol, it might boost sugar prices. However, exemptions for sugar diversion may happen only the next season of 2024-25 (Oct-Sep), he added.
In Maharashtra, prices were steady as mills were waiting in anticipation of firm demand ahead of festivals, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to remain at the current levels for the rest of the week, Kuvadia added.
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
-Flat at 3,710-3,875 rupees per 100 kg in central Uttar Pradesh
-Flat at 3,915-3,930 rupees per 100 kg in western Uttar Pradesh
At 1843 IST, sugar prices on the Intercontinental Exchange were up 0.3% at 18.57 cents. The US Department of Agriculture has forecast that in 2024-25 global sugar ending stocks would fall 4.7% on year to a 13-year low of 38.3 mln tn. Anticipation of a lower availability of sugar aided global prices. End
US$1 = 83.97 rupees
Edited by Akul Nishant Akhoury
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