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Informist, Wednesday, Dec. 4, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra fell Wednesday as buyers were hesitant to stock up sugar amid falling prices, said traders. The downtrend is likely to continue in the coming days, they said. 

Mills in Uttar Pradesh cut prices by INR 15-20 per 100 kg due to muted demand, said Naresh Gupta, a local trader from North India. Since November, sugar prices have fallen by around INR 270 per 100 kg, Gupta said. The resale market has exhausted the pipeline stocks, but buyers are not stocking up and are resorting to need-based purchases, he added.

Prices are likely to fall in the coming days as there is no demand from bulk consumers of sugar such as ice-cream and cold-drink manufacturers due to cooler weather, Gupta said. Prices are likely to fall further even though the sales quota for December is 15% lower than the previous month, as demand is poor amid the ongoing crushing season, Gupta said, adding that mills also have the carryover stocks of the previous months, he said.

Mills in Maharashtra also cut prices by INR 10-15 per 100 kg, due to poor demand, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to remain under pressure this month, Kuvadia added.

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

-Down INR 15-20 at INR 3,580-INR 3,700 per 100 kg in western Uttar Pradesh

-Down INR 15-20 at INR 3,600-INR 3,720 per 100 kg in central Uttar Pradesh

-Down INR 10-15 at INR 3,500-INR 3,550 per 100 kg in Kolhapur, Maharashtra

-Down INR 10-15 at INR 3,642-INR 3,682 per 100 kg in Mumbai, Maharashtra

At 1621 IST, sugar prices on the Intercontinental Exchange were down 0.3% at 21.38 cents per pound. The outlook for higher sugar production in Thailand is bearish for sugar prices. On Oct. 29, Thailand's Office of the Cane and Sugar Board projected the country's sugar production in 2024-25 to rise by 18% to 10.35 million tonnes.  End

US$1 = INR 84.74

Edited by Saji George Titus

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