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Informist, Wednesday, Nov. 13, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar fell Wednesday in the key markets of Uttar Pradesh and Maharashtra on poor demand, traders said. Prices are likely to remain bearish during the rest of the month as demand is unlikely to pick up, they said.

Mills across Uttar Pradesh cut prices by INR 10-15 per 100 kilograms due to sluggish demand and ample availability of sugar as crushing has started, said Naresh Gupta, a trader from north India. Prices have fallen over INR 100 per 100 kg this month from the peak price levels, he said. 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.

The pipeline stocks in the resale market are low, but resellers are hesitant to stock up as prices might fall further, Gupta said. Prices are likely to remain at the current levels or decline, even if demand picks up slightly during the wedding season, said Gupta. The pace of decline in prices has reduced and might stabilise after falling by another INR 30-50 per 100 kg, he added. 

Mills in Maharashtra also cut prices by INR 10-15 per 100 kg, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Festivals have ended so there is no demand from bulk manufacturers of sugar and the household demand was also met at the beginning of the month, said Kuvadia. Hence, prices are unlikely to pick up any time soon, he said. 

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

-Down by INR 10-INR 15 at INR 3,680-INR 3,840 per 100 kg in western Uttar Pradesh

-Down by INR 10-INR 15 at INR 3,680-INR 3,830 per 100 kg in central Uttar Pradesh

-Down by INR 10-INR 15 at INR 3,615-INR 3,680 per 100 kg in Kolhapur, Maharashtra

-Down by INR 10-INR 15 at INR 3,690-INR 3,902 per 100 kg in Mumbai, Maharashtra

At 2024 IST, sugar prices on the Intercontinental Exchange were down 1.2% at 21.09 cents per pound. Sugar prices fell, tracking a fall in crude oil prices on the New York Mercantile Exchange. When crude oil prices fall, it discourages the diversion of sugarcane for ethanol production, which increases the availability of sugarcane for the production of sugar.  End

US$1 = INR 84.37

Edited by Saji George Titus

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