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Informist, Tuesday, Nov. 19, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh fell again Tuesday, but the pace of decline in prices has started to reduce as these have almost bottomed out, traders said. Mills in key markets of Maharashtra kept prices steady, they said. 

Mills in western Uttar Pradesh cut prices by INR 10 per 100 kg, while mills in the central part of the state cut prices by INR 10-20 per 100 kg as there was sluggish demand, said Naresh Gupta, a local trader from north India. After increasing by over INR 100 per 100 kg post the release of the sales quota of 2.2 million tonnes for November, prices fell by over INR 170 per 100 kg, said Gupta. However, prices have bottomed out and are likely to increase from here, Gupta added. The pipeline stocks with the resale market have also dried up, which might lead to an increase in demand from the resalers, he said. 

Rates of the sweetener in Maharashtra were steady Tuesday, after falling by almost INR 70 per 100 kg in the past few days, 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 might fall further in the coming days, he added. 

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

-Down by INR 10 at INR 3,670-INR 3,770 per 100 kg in western Uttar Pradesh

-Down by INR 10-INR 20 at INR 3,670-INR 3,780 per 100 kg in central Uttar Pradesh

-Flat at INR 3,550-INR 3,640 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,742-INR 3,851 per 100 kg in Mumbai, Maharashtra

At 1744 IST, sugar prices on the Intercontinental Exchange were down 0.4% at 22.1 cents per pound. Sugar prices fell, tracking a decline 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 availability of cane for sugar production.  End

US$1 = INR 84.41

Edited by Deepshikha Bhardwaj

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