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Informist, Thursday, Nov. 7, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar fell Thursday in key markets of Uttar Pradesh and Maharashtra, said traders. Sugarcane crushing has begun in Uttar Pradesh and will start in Maharashtra Nov. 10 onwards so millers are clearing the existing stocks, they said.

Mills across Uttar Pradesh cut prices by INR 15-20 per 100 kg due to poor demand amid arrivals of newly harvested cane for crushing, according to Naresh Gupta, a trader from north India. Mills across the state had increased prices by INR 100 per 100 kg after the government released the sugar sales quota of 2.2 million tonnes for November, said Gupta.

Prices are likely to remain at the current levels or fall, even if demand picks up slightly during the wedding season, said Gupta. This is because demand will be need-based and buyers are reluctant to stock up amid the ongoing downtrend in prices, he added.

Prices of sugar in the key markets of Maharashtra fell by INR 10-15 due to poor demand and mills clearing up old stocks of sugar before new cane arrivals, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to fall by INR 5-10 per 100 kg as there is poor demand and crushing is likely to start after Nov. 10, Kuvadia said.

Following are the highlights of sugar prices in the domestic market on Wednesday:

-Down by INR 15-20 at INR 3,700-3,925 per 100 kg in western Uttar Pradesh

-Down by INR 15-20 at INR 3,710-3,870 per 100 kg in central Uttar Pradesh

-Down by INR 10-15 at INR 3,630-3,680 per 100 kg in Kolhapur, Maharashtra

-Down by INR 10-15 at INR 3,806-3,902 per 100 kg in Mumbai, Maharashtra

At 1746 IST, sugar prices on the Intercontinental Exchange were up 1.4% at 22.33 cents per pound. Recent drought and excessive heat caused fires in Brazil that damaged sugar crops in top sugar-producing state Sao Paulo. Sugarcane industry group Orplana said as many as 2,000 fire outbreaks affected up to 80,000 hectares of planted sugarcane in Sao Paulo. 

Conab, Brazil's government crop forecasting agency, cut its overall 2024-25 Brazil Centre South sugar production estimate on Aug. 22 to 42 million tonnes from a previous forecast of 42.7 million tonnes, citing lower sugarcane yields due to drought and excessive heat. Concerns of lower availability of sugar supported global sugar prices.  End

US$1 = INR 84.37

Edited by Deepshikha Bhardwaj

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