India Sugar
Steady in key markets, ICE prices up on worry of lower output
This story was originally published at 17:26 IST on 4 February 2025
Register to read our real-time news.Informist, Tuesday, Feb. 4, 2025
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were steady Tuesday, said traders. Prices are already at elevated levels and demand was on par with supply, they said.
Mills across Uttar Pradesh kept prices steady Tuesday due to weak demand at higher price levels, according to Naresh Gupta, a trader from northern India. However, mills are expected to raise prices in the coming days as it is the beginning of the month and demand is likely to pick up, he said.
In Maharashtra, too, mills kept prices steady Tuesday, as demand and supply were on par, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Mills in the states raised prices by INR 30-INR 40 per 100 kg the previous day due to concerns about lower output, said Kuvadia. The Indian Sugar Mills & Bio-Energy Manufacturers Association has projected sugar production in sugar year 2024-25 (Oct-Sept) at 27.3 million tonnes, a 14.4% decline from the 31.9 million tonnes produced in 2023-24, according to its second advance estimate.
Mills are also exporting sugar, raising concerns about domestic availability, which is likely to support prices, Kuvadia said. The government permitted the export of 1 million tonnes of sugar in the 2024-25 season to stabilise prices and ensure timely payments to farmers. The Centre had banned sugar exports in June 2022 amid concerns about lower production. After Brazil, India is the largest sugar producer.
The following are the highlights of sugar prices in the domestic market Tuesday:
-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 3,890-INR 3,920 per 100 kg in Kolhapur, Maharashtra
-Flat at INR 3,882-INR 3,992 per 100 kg in Mumbai, Maharashtra
At 1702 IST, sugar prices on the Intercontinental Exchange were up 1% at 19.44 cents per pound. Prices found support from signs of lower 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 million tonnes, down nearly 17% from 31.9 million tonnes a year ago. End
US$1 = INR 87.06
Edited by Avishek Dutta
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