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Informist, Friday, Sep 27, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh rose significantly after the release of the sales quota for October, as the market considered it to be insufficient to meet the firm domestic demand ahead of festivals, said traders. Mills in Maharashtra, however, kept prices steady despite a slightly lower-than-expected sales quota, they said. 

Mills in west Uttar Pradesh increased prices by almost 80–90 rupees per 100 kg, and those in central Uttar Pradesh raised rates by 40-50 rupees per 100 kg, after the release of the sales quota, said Naraesh Gupta, a local trader from north India. Prices shot up in a day as the market participants, deemed the sales quota to be insufficient, he said. There was firm demand at the elevated prices. 

The Centre has set the domestic sugar sales quota for October at 2.55 mln tn, the food and public distribution department said in a post on social media platform X on Thursday. The quota for October is up 8.5% on month from 2.35 mln tn in September and down nearly 12% on year. In October 2023, the quota was set at 2.9 mln tn. 

Prices in the resale market also increased 70 rupees per 100 kg, he said, as the pipeline stocks were exhausted. Sweetener prices in the coming week are expected to continue the downtrend, according to Gupta. 

In Maharashtra, sugar prices were steady, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. However, in the coming week, prices are likely to increase by 20–30 rupees per 100 kg, if demand picks up, Kuvadia said. In the coming days, prices will fall or rise depending on government policies regarding the minimum selling price for sugar, he added.

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

-Up 40-50 rupees at 3,800-3,900 rupees per 100 kg in central Uttar Pradesh

-Up 80–90 rupees at 3,800-3,920 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 1622 IST, sugar prices on the Intercontinental Exchange were down 2.5% at 22.65 cents per pound. Global sugar prices posted moderate losses after the Indian Sugar and Bio-energy Manufacturers Association said India will have 2 mln tn of sugar to export next season and urged the government to lift its current sugar export restrictions, according to Barchart.com.  End

US$1 = 83.70 rupees

Edited by Manisha Baxla

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