More Stories

Informist, Thursday, Sep 19, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh rose slightly today as stocks in pipelines are low, traders said. Prices in Maharashtra were steady from the previous day. 

Mills in both west and central Uttar Pradesh rose today by 10–15 rupees per 100 kg, said Naresh Gupta, a local trader from north India. Sugar prices had risen 100–120 rupees last week as demand rebounded from lower levels, Gupta said.       

In Maharashtra, sugar prices are likely to remain in the current range as demand is low with the market waiting for the government to increase the minimum selling price of the sweetener. There will not be much movement in sugar prices for the rest of the month, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 

Sugar prices are likely to rise next month as the festival season in India will start, Kuvadia said, adding that if the government hikes the minimum selling price, domestic prices will increase. The sugar industry has been demanding a raise in the minimum selling price for sugar, arguing that the price has not been revised for the past five years. 

In February, the government raised the fair and remunerative price for sugarcane for the 2024-25 (Oct-Sep) sugar season to 340 rupees per 100 kg. The fair and remunerative price paid to sugarcane farmers has now been raised four times in recent years. On the other hand, the minimum selling price for sugar has been kept at 31 rupees a kg since 2019.

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

-Up 10-15 at 3,800-3,886 rupees per 100 kg in central Uttar Pradesh

-Up 10–15 rupees at 3,770-3,855 rupees per 100 kg in western Uttar Pradesh

-Flat at 3,805-3,936 rupees per 100 kg in Mumbai

-Flat at 3,700-3,750 rupees per 100 kg in Kolhapur

At 1917 IST, sugar prices on the Intercontinental Exchange were up 1.3% at 21.83 cents per pound. 

Global sugar prices rose today as the dollar fell against a basket of major currencies, which makes commodities priced in the greenback cheaper for overseas buyers. Also, higher oil prices supported prices as well. The rise in crude oil prices encourages diversion of sugarcane for ethanol production, which reduces its supply for production of the sweetener.  End

US$1 = 83.68 rupees

Edited by Manisha Baxla

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.