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Informist, Wednesday, Sep 4, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh fell slightly today, as demand was muted, traders said. Mill prices of the sweetener in Maharashtra remained steady today, they said. 

Mills across Uttar Pradesh cut prices by 5–10 rupees per 100 kg today as demand was subdued despite a lower sales quota, due to heavy rainfall in parts of north India, said Naresh Gupta, a local trader. Market participants were of the view that a lower sales quota of 2.35 mln tn would not be sufficient to meet demand during September, and prices would increase, but prices continued to decline after rising post the release of the sales quota, Gupta said.

In the resale market too, prices fell by 5–10 rupees per 100 kg today due to sluggish demand, Gupta said. Prices will start increasing in the next three to four days, once the resale market exhausts the stocks in the pipeline, said Gupta. He added that prices should fall by another 10–20 rupees on Thursday and stabilise at those levels, as prices have already fallen significantly in the past few days.

In Maharashtra, prices have been steady for the past three days, said Semal Sudhir Jain, secretary of the Kolhapur - Karad - Sangli Sugar Merchants Association. Demand for the festival of Ganesh Chaturthi has already been met, and prices also rose by 30 rupees after the release of the sales quota, Jain said. Demand will only pick up at the end of this month, ahead of the Dussehra and Diwali festivals, Jain added. 

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

-Down 5–10 rupees at 3,720-3,830 rupees per 100 kg in central Uttar Pradesh

-Down 5–10 rupees at 3,720-3,810 rupees per 100 kg in western Uttar Pradesh

-Flat at 3,822-3,932 rupees per 100 kg in Mumbai

-Flat at 3,740-3,790 rupees per 100 kg in Kolhapur

At 2037 IST, sugar prices on the Intercontinental Exchange were down 1% at 19.32 cents per poundThe fall was tracking losses in crude oil prices. When crude oil prices fall, it discourages diversion of sugarcane for ethanol production, which increases its supply for production of the sweetener.  End

US$1 = 83.97 rupees

Edited by Avishek Dutta

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