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Informist, Friday, Dec. 27, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra rose as demand picked up slightly, said traders. Prices are likely to increase further in the coming days as the sales quota for January is deemed insufficient, they said. 

Mills across Uttar Pradesh raised prices by INR 30-INR 40 per 100 kilograms as there was speculative buying, said Naresh Gupta, a trader from north India. In the retail market too, prices increased by INR 5-INR 10 per 100 kilograms, he said. Prices are likely to increase further if there is no pressure on mills to meet the monthly sales quota, he said. The sales quota for January is set at 2.25 million tonnes, which could be less to meet the demand during the month as there are a few festivals in January and there could be demand from bulk consumers of sugar such as confectionaries. 

Mills may also, however, cut prices if there is pressure to meet the sales quota for December, Gupta said. Demand was generally poor with the availability of alternatives such as jaggery and khandsari, he added.

Mills in Maharashtra also raised prices by INR 10 per 100 kg, as there was demand from households for the next month, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.  

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

-Up INR 30-INR 40 at INR 3,625-INR 3,750 per 100 kg in western Uttar Pradesh

-Up INR 30-INR 40 at INR 3,650-INR 3,780 per 100 kg in central Uttar Pradesh

-Up INR 10 at INR 3,480-INR 3,550 per 100 kg in Kolhapur, Maharashtra

-Up INR 10 at INR 3,680-INR 3,812 per 100 kg in Mumbai, Maharashtra

At 2032 IST, the price of sugar on the Intercontinental Exchange rose 0.8% to 19.41 cents per pound, tracking gains in crude oil prices on the NYMEX. Higher crude oil prices encourage diversion of sugarcane towards the production of ethanol, leading to a fall in sugar supplies.  End

US$1 = INR 85.53

Edited by Akul Nishant Akhoury

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