More Stories

Informist, Tuesday, Oct. 22, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh were down again Tuesday due to sluggish demand, said traders. In Maharashtra, prices remained steady, they said.

Mills in central Uttar Pradesh cut prices by INR 30-40 per 100 kg due to subdued demand, said Naresh Gupta, a local trader from north India. Participants in the resale market are reluctant to buy at the moment as they expect prices to fall further, Gupta said.

In the past 15–20 days, sugar prices in Uttar Pradesh have fallen by over INR 100 from the peak of INR 3,961 per 100 kg early this month and should stabilise at the current levels, but mills are in a hurry to meet the sales quota for the month and there is poor demand even ahead of Diwali. Hence, mills might reduce prices further, Gupta said. In the resale markets, too, prices were Tuesday down by INR 5-10 per 100 kg.

The downtrend is likely to continue even in the coming month as crushing of sugarcane and production of sugar will start and availability of good quality sugar will increase, Gupta added.

Mills in Maharashtra kept prices steady, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices might start falling from Wednesday as demand is subdued and is unlikely to pick up any sooner, Kuvadia said. Market participants expected demand to pick up ahead of Diwali, but it did not. 

In the coming month also, prices might be on the downtrend as winter is approaching and demand from bulk consumers of sugar such as ice-cream and cold-drink manufacturers is usually low during the winter, Kuvadia added.

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

-Down INR 30-40 at INR 3,725-3,850 per 100 kg in western Uttar Pradesh

-Down INR 30-40 at INR 3,720-3,820 per 100 kg in central Uttar Pradesh

-Flat at INR 3,862-3,950 per 100 kg in Mumbai

-Flat at INR 3,650-3,700 per 100 kg in Kolhapur

At 1649 IST, sugar prices on the Intercontinental Exchange were down 0.5% at 21.72 cents per pound. Optimism that above-average monsoon rainfall in India will lead to a bumper sugarcane crop is bearish for global sugar prices. India received 934.8 mm of rain during the current monsoon season as of Sep. 30, the most in four years and 7.6% more than the comparable long-term average of 868.6 mm, according to the India Meteorological Department.  End

US$1 = INR 84.07

Edited by Ashish Shirke

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 (22) 6985-4000 

Send comments to feedback@informistmedia.com

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