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Informist, Thursday, Nov. 14, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar continued to fall in the key markets of Uttar Pradesh on muted demand, traders said. Prices were, however, steady in Maharashtra, they said. 

Some mills in Uttar Pradesh cut prices by INR 20-30 per 100 kg due to sluggish demand, said Naresh Gupta, a local trader from north India. Demand is need-based and buyers are not stocking sugar even though the pipeline stocks in the resale market have almost exhausted, Gupta said. Prices in the resale market fell by INR 10-15 per 100 kg, he said.

Resellers are hesitant to stock, fearing a further fall in prices, Gupta said. Prices may stabilise after declining by another INR 30-50 per 100 kg, he said. 

Prices have fallen over INR 100 per 100 kg this month from the peak 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.

Prices of sugar in Maharashtra were steady Thursday, after falling the previous day, Semal Sudhir Jain, secretary at Kolhapur Karad Sangli Sugar Merchant Association, said. There is demand, but prices will remain on the downtrend as new production has started to come in and mills want to liquidate the old stocks, Jain said. Both new and old stocks are selling at the same price, Jain added.

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

-Down by INR 20-INR 30 at INR 3,680-INR 3,800 per 100 kg in western Uttar Pradesh

-Down by INR 20-INR 30 at INR 3,690-INR 3,800 per 100 kg in central Uttar Pradesh

-Flat at INR 3,615-INR 3,680 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,690-INR 3,902 per 100 kg in Mumbai, Maharashtra

At 1930 IST, sugar prices on the Intercontinental Exchange were up 1% at 21.39 cents per pound. Sugar prices rose tracking a rise in crude oil prices on the New York Mercantile Exchange. When crude oil prices increase, it encourages the diversion of sugarcane for ethanol production, which reduces the availability of cane for sugar production.  End

US$1 = INR 84.39

Edited by Saji George Titus

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