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Informist, Monday, Nov. 18, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of both Uttar Pradesh and Maharashtra fell Monday due to demand being only need based, said traders. Prices have already fallen significantly this month and are likely to fall further, they added. 

Some mills in Uttar Pradesh cut prices by INR 20 per 100 kg due to sluggish demand, said Naresh Gupta, a local trader from north India. Demand is need based and buyers are reluctant to stock up sugar amid falling prices, said Gupta. Even though there was anticipation that demand might pick up slightly as resellers are running low on pipeline stocks, there was no increase in demand, he said.

Prices have fallen about INR 170 per 100 kg this month from 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. 

Sweetener rates in Maharashtra fell by INR 15-20 per 100 kg due to sluggish demand, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. The household demand is met at the beginning of the month and festivals are over, so there is no demand from bulk consumers of sugar such as confectioneries, Kuvadia said. Prices have fallen by about INR 70 per 100 kg during this month and are likely to fall further this week as demand is unlikely to pick up, he added.

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

-Down by INR 20 at INR 3,680-INR 3,780 per 100 kg in western Uttar Pradesh

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

-Down by INR 15-INR 20 at INR 3,550-INR 3,640 per 100 kg in Kolhapur, Maharashtra

-Down by INR 15-INR 20 at INR 3,742-INR 3,851 per 100 kg in Mumbai, Maharashtra

At 1931 IST, sugar prices on the Intercontinental Exchange were up 1.8% at 21.96 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 84.38

Edited by Deepshikha Bhardwaj

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