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Informist, Monday, Dec. 9, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh rose slightly Monday as mills wanted a correction after a significant decline in rates, said traders. Mills in Maharashtra kept prices steady today as there was only need-based demand, they said.

Mills across Uttar Pradesh raised prices by INR 10 per 100 kg, as prices have fallen by over INR 270 since November, said Naresh Gupta, a trader from north India. Mills quoted slightly higher prices, but there was little demand at the quoted prices, said Gupta. On the other hand, prices fell in the resale market by INR 5-7 per 100 kg due to poor demand, he said. 

Demand for the sweetener is usually less during this time due to lower bulk demand, such as from ice-cream and cold-drink manufacturers, said Gupta. Moreover, due to availability of alternatives such as jaggery and Khandsari, demand for sugar fell even more, he added. Price trends are likely to remain mixed during the coming days, as prices are significantly low and mills will want to raise rates. However, on the other hand, poor demand is likely to weigh on prices, and the higher quoted price levels might not sustain, Gupta said.

Mills in Maharashtra kept prices steady Monday due to limited demand, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to remain at the current levels during this week, he said.

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

-Up INR 10 at INR 3,570-3,700 per 100 kg in western Uttar Pradesh

-Up INR 10 at INR 3,610-3,730 per 100 kg in central Uttar Pradesh

-Flat at INR 3,500-3,550 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,642-3,682 per 100 kg in Mumbai, Maharashtra

At 1639 IST, sugar prices on the Intercontinental Exchange were up 0.3% at 21.87 cents per pound, tracking gains in crude oil prices. Higher crude oil prices are likely to prompt mills to divert more sugarcane towards ethanol than sugar production, thus lowering sugar supplies.  End

US$1 = INR 84.73

Edited by Deepshikha Bhardwaj

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