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Informist, Monday, Nov. 25, 2024

By J. Navya Sruthi

MUMBAI – Ex-mill prices of sugar fell in the key markets of Uttar Pradesh and Maharashtra Monday due to low demand and higher supply, traders said. Mills might cut prices further to clear stocks to meet the sales quota for
November, they said. 

Prices of sweetener were down by INR 10 per 100 kg in Maharashtra due to low demand and higher supply from mills, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. The household demand has also fallen in the market as it is usually higher at the beginning of the month, he said. Industrial demand for sugar during winter is also low, which has led to the decline in prices, Naresh Gupta, a sugar trader from northern India, said.  

Mills have also started to liquidate the supply as the new crop has arrived in the markets, the traders said. Sugar prices in Uttar Pradesh were down by INR 10-15 per 100 kg, Gupta said. Market participants now await the announcement of the monthly sugar sales quota for December by the government.

The central government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers. 

Following are the highlights of sugar prices in the domestic market Monday:

-Down INR 10-15 at INR 3,650-INR 3,760 per 100 kg in western Uttar Pradesh

-Flat at INR 3,670-INR 3,780 per 100 kg in central Uttar Pradesh

-Down INR 10 at INR 3,550-INR 3,570 per 100 kg in Kolhapur, Maharashtra

-Down INR 10 at INR 3,736-INR 3,856 per 100 kg in Mumbai, Maharashtra

At 1736 IST, sugar prices on the Intercontinental Exchange were down 0.5% at 21.25 cents per pound, as the International Sugar Organization has estimated a 1.31 million tonne sugar surplus during 2023-24, compared to a 200,000 tonnes deficit earlier. 

Also, the outlook for higher sugar production in Thailand weighed on sugar prices. Thailand's Office of the Cane and Sugar Board projected the country's sugar production in 2024-25 would jump by 18% to 10.35 million tonnes, Barchart reported. Thailand, the world's third-largest sugar producer and the second-largest sugar exporter, produced 8.77 million tonnes of sugar in the 2023-24 season that ended in April. End

Edited by Saji George Titus

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