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Informist, Friday, Jan. 24, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra fell today due to poor demand, said traders. Prices have risen significantly during the month and are unlikely to rise further as there is selling pressure on mills, they added.

Mills in Maharashtra cut prices by INR 10 per 100 kg as there was poor demand at elevated prices, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices also fell due to profit bookings, said Kuvadia. Moreover, there are only a few days left to meet the monthly sales quota, and there is selling pressure on mills, he added.

The trajectory of prices now depends on the release of 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.

Mills in Uttar Pradesh also cut prices by INR 10-20 per 100 kg due to poor demand, said Naresh Gupta, a trader from north India. 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. Prices are likely to fall further if mills are in a hurry to meet the sales quota, he added.

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

-Down INR 10-INR 20 at INR 3,850-INR 4,000 per 100 kg in western Uttar Pradesh

-Down INR 10-INR 20 at INR 3,850-INR 4,000 per 100 kg in central Uttar Pradesh

-Down INR 10 at INR 3,650-INR 3,720 per 100 kg in Kolhapur, Maharashtra

-Down INR 10 at INR 3,772-INR 3,922 per 100 kg in Mumbai, Maharashtra

At 1907 IST, sugar prices on the Intercontinental Exchange were up 2% at 19.02 cents per pound, tracking gains in crude oil prices on the New York Mercantile Exchange. Higher crude oil prices encourage the diversion of sugarcane towards the production of ethanol, leading to a fall in sugar supplies.  End

US$1 = INR 86.20

Edited by Deepshikha Bhardwaj

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