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Informist, Monday, Jan. 20, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar jumped in the key markets of Uttar Pradesh and Maharashtra on Monday as the government allowed exports of sugar, traders said. The government allowed exports of sugar and set the export quota at 1 million tonnes for 2024-25 (Oct-Sep), Consumer Affairs and Food and Public Distribution Minister Pralhad Joshi said. The move is aimed at stabilising sugar prices and ensuring timely payments to farmers, Joshi said.

Mills in Uttar Pradesh raised sweetener prices by INR 70-INR 100 per 100 kg Monday after the government lifted the ban on exports, said Naresh Gupta, a trader from north India. Prices have already risen by INR 125 in January and by about INR 175 in the past two months, he said.

Sugar prices are likely to rise further as the second half of the month will see warmer weather, resulting in improved demand from bulk consumers 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.

Mills in Maharashtra increased prices of sugar by a whopping INR 100 per 100 kg, as the market sentiment is bullish after the government eased the restrictions, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Market players are of the view that sugar will be insufficient to meet domestic consumption as sugar output in Oct-Dec declined 15.6% on year.

Moreover, 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. Talks about a hike in the minimum selling price of sugar is 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 Kuvadia.

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

-Up INR 70-INR 100 at INR 3,850-INR 4,020 per 100 kg in western Uttar Pradesh

-Up INR 70-INR 100 at INR 3,850-INR 4,020 per 100 kg in central Uttar Pradesh

-Up INR 100 at INR 3,710-INR 3,810 per 100 kg in Kolhapur, Maharashtra

-Up INR 100 at INR 3,780-INR 3,952 per 100 kg in Mumbai, Maharashtra

Intercontinental Exchange is shut on account of Martin Luther King Jr. Day in the US.  End

US$1 = INR 86.56

Edited by Saji George Titus

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