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Informist, Monday, Dec. 16, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were steady today, traders said. Prices are likely to be under pressure in the coming days due to subdued demand, they said.

Mills across Uttar Pradesh kept prices steady as there was limited need-based demand, said Naresh Gupta, a trader from north India. Resale markets have exhausted pipeline stocks, but are hesitant to stock up as there is little demand, Gupta said. Rajasthan is buying the sweetener from Maharashtra as prices there are lower than in Uttar Pradesh, said Gupta. Moreover, demand for the sweetener is usually low during this time due to lower offtake by bulk buyers such as ice-cream and cold-drink manufacturers. Due to the availability of alternatives such as jaggery and khandsari, demand for sugar has fallen even more, he added.

The resale market cut prices by INR 5-INR 7 per 100 kg Monday, Gupta said. Mills in Uttar Pradesh are likely to cut prices by INR 10-INR 20 per 100 kg this week as demand is unlikely to pick up, Gupta said.

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

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

-Flat at INR 3,575-3,690 per 100 kg in western Uttar Pradesh

-Flat at INR 3,575-3,690 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 2030 IST, the price of sugar on the Intercontinental Exchange was down 1% at 20.51 cents per pound, tracking losses in crude oil. Lower crude oil prices are likely to discourage diversion of sugarcane towards the production of ethanol, leading to a rise in sugar supplies.  End

US$1 = INR 84.86

Edited by Avishek Dutta

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