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Informist, Monday, Nov. 11, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar fell in the key markets of Uttar Pradesh further Monday as buyers were reluctant to stock up sugar amid a falling market, traders said. Prices of sugar in the key markets of Maharashtra were steady, they said.

Mills across Uttar Pradesh cut prices by INR 10-INR20 per 100 kg as demand remained sluggish, said Naresh Gupta, a trader from north India. The pipeline stocks with the resale market are low, but they are hesitant to stock up sugar as prices might fall further, Gupta said. Prices are likely to remain at the current levels or fall, even if demand picks up slightly during the wedding season, said Gupta.

Prices had risen by about INR 100 per 100 kg after the government announced a lower sugar sales quota of 2.2 million tonnes for November, Gupta said. Prices are likely to fall back to the levels prevailing before the announcement of the sales quota for the month, he said. Prices in the resale market of Uttar Pradesh also fell by INR 10-INR 20 per 100 kg, Gupta added.

Prices of sugar in the key markets of Maharashtra were steady Monday, after falling the previous day, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to fall by INR 10-INR 20 per 100 kg as there is poor demand and crushing is likely to start after Sunday, Kuvadia said.

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

-Down by INR 10-INR 20 at INR 3,690-INR 3,890 per 100 kg in western Uttar Pradesh

-Down by INR 10-INR 20 at INR 3,700-INR 3,820 per 100 kg in central Uttar Pradesh

-Flat at INR 3,620-INR 3,670 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,796-INR 3,882 per 100 kg in Mumbai, Maharashtra

At 2037 IST, sugar prices on the Intercontinental Exchange were down 2.7% at 21.27 cents per pound. Sugar prices fell, tracking a fall in crude oil prices on the New York Mercantile Exchange. When crude oil prices decrease, it discourages the diversion of sugarcane for ethanol production, which increases the supply of sugarcane for the production of sugar.  End

US$1 = INR 84.39

Edited by Saji George Titus

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