India Sugar
Steady in key markets as demand sluggish at elevated prices
This story was originally published at 20:57 IST on 14 January 2025
Register to read our real-time news.Informist, Tuesday, Jan. 14, 2025
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were steady Tuesday as demand for the sweetener was sluggish at elevated price levels, said traders. Prices are likely to increase in the coming days as mills are not in a hurry to meet the sales quota for the month, they said.
Mills across Uttar Pradesh kept prices steady Tuesday as demand did not pick up at elevated levels, said Naresh Gupta, a trader from north India. Prices have increased significantly in the last few days, after the release of the sales quota for January. In the resale market too, the prices were steady, Gupta said.
Prices are likely to rise further as the second half of the month will see warmer weather and there will be demand from bulk consumers of sugar such as ice-cream and soft-drink manufacturers. In addition, the wedding season will start in the second half of January, which will also support sugar prices, Gupta said.
Mills in Maharashtra kept prices steady Tuesday, after increasing rates by INR 5-INR 10 per 100 kg, as there was firm demand the previous day, said Semal Sudhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association. There is no selling pressure on mills at the moment, so rates are likely to be on the positive side during the coming days, Jain said. Moreover, rumours about a hike in the minimum selling price for sugar are likely to support prices, he added. The government is likely to decide on revising the minimum selling price only after the release of production figures by the end of January, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
The following are the highlights of sugar prices in the domestic market on Tuesday:
-Flat at INR 3,750-INR 3,845 per 100 kg in western Uttar Pradesh
-Flat at INR 3,740-INR 3,970 per 100 kg in central Uttar Pradesh
-Flat at INR 3,525-INR 3,590 per 100 kg in Kolhapur, Maharashtra
-Flat at INR 3,677-INR 3,862 per 100 kg in Mumbai, Maharashtra
At 2033 IST, the price of sugar on the Intercontinental Exchange was down 0.6% at 18.27 cents per pound, tracking losses in crude oil prices on the New York Mercantile Exchange. Lower crude oil prices discourage diversion of sugarcane towards production of ethanol, leading to a rise in sugar supplies. End
US$1 = INR 86.63
Edited by Tanima Banerjee
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