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Informist, Tuesday, Jan. 28, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh fell Tuesday due to poor demand at elevated prices, said traders. On other hand, prices in Maharashtra rose as most mills have met their sales quota for January, they said.

Mills in Uttar Pradesh cut prices by another INR 10-INR 20 per 100 kg Tuesday as there was sluggish demand at elevated prices, said Naresh Gupta, a trader from north India. Moreover, there are only a few days left to meet the monthly sales quota and there is a selling pressure, he said. Prices are likely to fall further if mills are in a hurry to meet the sales quota, he added.

In Maharashtra, however, mills raised prices Tuesday by INR 5-INR 10 per 100 kg as most of them have offloaded stocks and met the sales quota for January, said Mukesh Kuvadi, secretary of the Bombay Sugar Merchants Association. Mills are now awaiting the release of the sales quota for February, and if the quota is anything less than 2.3 million tonnes, the sweetener prices could rise, said Kuvadia.

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 sugar production by the end of January, said Kuvadia.

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

-Down INR 10-INR 20 at INR 3,840-INR 4,000 per 100 kg in western Uttar Pradesh

-Down INR 10-INR 20 at INR 3,830-INR 4,000 per 100 kg in central Uttar Pradesh

-Up INR 5-INR 10 at INR 3,645-3,720 per 100 kg in Kolhapur, Maharashtra

-Up INR 5-INR 10 at INR 3,767-3,922 per 100 kg in Mumbai, Maharashtra

At 2012 IST, sugar prices on the Intercontinental Exchange were up 1% at 19.37 cents per pound. The prices found support from signs of smaller sugar production in India, the world's second-largest producer. The All India Sugar Trade Association has pegged the country's net sugar output in 2024-25 (Oct-Sep) at 26.5 mln tn, down nearly 17% from 31.9 mln tn a year ago. 

Sugar prices also rose, tracking crude oil prices in 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 86.52

Edited by Akul Nishant Akhoury

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