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Informist, Friday, Jan. 31, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra rose today due to anticipation of lower production, said traders. Prices are likely to be on the upward trend, as it is the beginning of the month, and mills are not in a hurry to meet the sales quota, they said.

Mills in Uttar Pradesh, raised prices by INR 25-30 per 100 kg and there was demand at the elevated price levels, said Naresh Gupta, a trader from north India. Prices are likely to rise in the coming days as it is the beginning of the month and there will be household demand, said Gupta. Additionally, there will be demand from bulk consumers of sugar such as ice-cream and cold-drink manufacturers, as the weather is getting warmer, he said.

Mills in Maharashtra also raised prices by INR 10-15 per 100 kg on Friday, due to anticipation of lower production, said Semal Sudhir Jain, secretary of Kolhapur Karad Sangli Sugar Merchant Association. There is demand at elevated prices, so the upward trajectory is likely to continue, Jain said. 

The Indian Sugar Mills & Bio-Energy Manufacturers Association sees sugar production in the sugar year 2024-25 (Oct-Sep) at 27.3 million tonnes, down 14.4% on year from 31.9 million tonnes in 2023-24, according to its second advance estimate.

For the current sugar year, the association has pegged output in Uttar Pradesh at 9.5 million tonnes. Production in Maharashtra has been pegged at 8.8 million tonnes. In Karnataka, output of the sweetener is pegged at 4.0 million tonnes. In Gujarat, the association has pegged sugar production at 960,000 tonnes.

Sugarcane yield and sugar recovery in Uttar Pradesh are lower this year, primarily because of widespread red rot infestation and varietal replacement, resulting in lower estimated sugar production, the association said. The other two major sugar-producing states of Maharashtra and Karnataka are also getting lower cane yields per unit area, it said. The main reason is the early onset of flowering in several cane-growing regions due to wet field conditions, an outcome of the higher rainfall received during the southwest monsoon and post-monsoon seasons in 2024, it said.

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

-Up INR 25-INR 30 at INR 3,860-INR 4,000 per 100 kg in western Uttar Pradesh

-Up INR 25-INR 30 at INR 3,860-INR 4,000 per 100 kg in central Uttar Pradesh

-Up INR 10-INR 15 at INR 3,675-3,755 per 100 kg in Kolhapur, Maharashtra

-Up INR 10-INR 15 at INR 3,797-3,957 per 100 kg in Mumbai, Maharashtra

At 2023 IST, sugar prices on the Intercontinental Exchange were down 0.3% at 19.15 cents per pound, tracking losses in crude oil prices on the New York Mercantile Exchange. Lower crude oil prices discourage diversion of sugarcane towards production of ethanol, leading to a rise in sugar supplies.  End

US$1 = INR 86.60

Edited by Avishek Dutta

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