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Informist, Thursday, Jan. 16, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Maharashtra and Uttar Pradesh rose again Thursday as demand was firm amid talk of a hike in the minimum selling price, said traders. Prices are likely to rise in the coming days as mills are not in a hurry to meet the sales quota for the month, they said.

Mills in Maharashtra increased prices of the sweetener by INR 20-INR 30 per 100 kg as demand was firm, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. There is no selling pressure on mills at the moment, so rates are likely to be on the positive side in the coming days, said Semal Sudhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association. Moreover, talk about a hike in the minimum selling price of sugar is likely to support prices, Jain said.

Kuvadia said the government is likely to decide on revising the minimum selling price only after the release of production figures by the end of January.

Mills in Uttar Pradesh also raised prices by INR 20 per 100 kg due to steady demand and as mills are not in a hurry to meet the monthly sales quota, said Naresh Gupta, a trader from north India. Prices have risen significantly in the last few days after the sales quota for January was released. Prices were also up in the resale market, Gupta said.

Sugar 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. Weddings are also expected to pick up in the second half of January, which will support sugar prices, Gupta said.

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

-Up INR 20 at INR 3,750-INR 3,920 per 100 kg in western Uttar Pradesh

-Up INR 20 at INR 3,770-INR 3,930 per 100 kg in central Uttar Pradesh

-UP INR 20-INR 30 at INR 3,555-INR 3,660 per 100 kg in Kolhapur, Maharashtra

-Up INR 20-INR 30 at INR 3,742-INR 3,882 per 100 kg in Mumbai, Maharashtra

At 1712 IST, the price of sugar on the Intercontinental Exchange was up 2.2% at 18.4 cents per pound. The commodity has support on signs of lower sugar production in India, the world's second-largest producer. The Indian Sugar and Bio-energy Manufacturers Association on Jan. 2 said the country's sugar production in Oct-Dec was down 15.6% on year at 9.54 million tonnes. This could prompt the government to keep export restrictions in place.  End

US$1 = INR 86.55

Edited by Nishant Maher

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