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Informist, Wednesday, Jan. 22, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra remained steady on Wednesday as there was sluggish demand at elevated price levels, said traders. Prices are likely to remain the same until the release of the sales quota for February, they added.

Mills in Uttar Pradesh kept prices steady Wednesday as most of the demand was met earlier, said Naresh Gupta, a trader from north India. Moreover, there was subdued demand at elevated prices, he said. Prices have risen by INR 250 per 100 kg since the start of the month due to a lower sales quota for January and as the government lifted export restrictions, said Gupta. Meanwhile, lower priced sugar is also available in the market, which is why there was sluggish demand for the sweetener at elevated prices, 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 also kept prices steady Wednesday after increasing rates by INR 100 per 100 kg after the government lifted the ban on exports, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices might stabilise at the current levels, said Kuvadia. 

However, prices might change after the release of the sales quota for February, Kuvadia said. Speculation 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 of the sweetener 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 Wednesday:

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

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

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

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

At 1855 IST, sugar prices on the Intercontinental Exchange were up 0.7% at 17.91 cents per pound. Sugar found support from signs of smaller sugar production in India, the world's second-largest producer. The Indian Sugar and Bio-energy Manufacturers Association on Jan. 9 said that India's 2024-25 sugar production in Oct-Dec was down 15.5% on year at 9.54 million tonnes.  End

US$1 = INR 86.32

Edited by Tanima Banerjee

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