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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 today, as demand was subdued, said traders. In Maharashtra, prices were steady today as demand failed to pick up, they said. 

Mills in west Uttar Pradesh cut prices by 20–30 rupees per 100 kg, while mills in central Uttar Pradesh cut prices by 10–20 rupees per 100 kg due to sluggish demand, said Naresh Gupta, a local trader. Buyers are reluctant to take positions at the moment as the sentiment is bearish, and market participants are of the view that prices will fall even further, Gupta said. 

Initially, prices had increased by 25–30 rupees per 100 kg after the release of the sales quota of 2.35 mln tn for September, as it was considered to be insufficient. However, prices are again back at previous months' levels, falling by 25–30 rupees in the past five to six days, as demand did not pick up.

In Maharashtra, prices were steady again today, as hardly any demand has been seen this month despite a series of festivals ahead, and buyers are waiting for fresh triggers to cut or raise prices, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 

Prices could fall by another 10–20 rupees in the coming days and demand is unlikely to pick up before the end of the month, Kuvadia said. Moreover, as demand for the Ganesh Chaturthi festival has already been met, there is no scope of further demand, said Semal Sudhir Jain, secretary of the Kolhapur - Karad - Sangli Sugar Merchants Association. 

Following are the highlights of sugar prices in the domestic market today:

-Down 10–20 rupees at 3,720-3,820 rupees per 100 kg in central Uttar Pradesh

-Down 20–30 rupees at 3,710-3,800 rupees per 100 kg in western Uttar Pradesh

-Flat at 3,820-3,952 rupees per 100 kg in Mumbai

-Flat at 3,700-3,765 rupees per 100 kg in Kolhapur

At 1809 IST, sugar prices on the Intercontinental Exchange were up 1.1% at 19.46 cents per pound. Global sugar prices were up, tracking a rise in crude oil prices. Strength in crude oil prices encourages diversion of sugarcane for ethanol production, which reduces its supply for production of the sweetener.  End

US$1 = 83.98 rupees

Edited by Avishek Dutta

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