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Informist, Friday, Nov. 29, 2024

By Afra Abubacker

NEW DELHI – Ex-mill prices of sugar remained flat in key markets of Maharashtra and Uttar Pradesh amid a lack of fresh triggers, traders said. They see prices climbing up in the coming week on the back of lower-level buying. However, with sugarcane crushing going full-fledged and sugar supply increasing in December, they say it is too early to gauge the price direction for the month. 

Prices were unchanged in the key markets of Maharashtra on Friday, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. For the coming week, Kuvadia expects prices to improve by INR 5-INR 10 due to increased beginning-of-month purchases. Moreover, demand is likely to improve on lower level buying, he said. Sugar prices fell INR 150 in Maharashtra in November, he added. 

In Uttar Pradesh, sugar rates were flat on Friday, Naresh Gupta, a north India-based trader said. Gupta sees sugar prices improving next week on the back of lower-level purchases as prices fell by INR 180 in the state in November. However, higher sugar production will weigh on prices in December. "Full crushing will be on. Uttar Pradesh will be under more pressure as Maharashtra started crushing late," Gupta said. 

However, to cushion prices in Uttar Pradesh, the Centre has decreased the December sugar sales quota by nearly 15% from last month. "Though the quota was lower than last month, it is sufficient to meet the demand," Gupta said. "We will have to see which direction the market will move (in December)."

The following are the highlights of sugar prices in the domestic market on Friday:

-Flat at INR 3,625-3,725 per 100 kg in western Uttar Pradesh

-Flat at INR 3,480-3,550 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,720-3,852 per 100 kg in Mumbai, Maharashtra

Sugar prices on the Intercontinental Exchange were unavailable on account of Black Friday. End

Edited by Tanima Banerjee

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