India Sugar
Down in north on poor demand at higher prices; ICE prices up
This story was originally published at 21:17 IST on 12 February 2025
Register to read our real-time news.Informist, Wednesday, Feb. 12, 2025
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh fell Wednesday as demand fell at higher rates, traders said. Mills in Maharashtra kept prices steady on demand-supply parity, they said.
Mills across Uttar Pradesh cut prices by INR 65-INR 70 per 100 kg owing to sluggish demand at elevated prices, said Naresh Gupta, a trader from north India. Mills cut prices as they wanted to offload some quantity of sugar, but demand was sluggish even at lower rates, Gupta said. Prices are likely to fall further by INR 10-INR 20 per 100 kg in the coming days, he said.
The trader hoped demand from bulk consumers such as ice-cream and cold-drink manufacturers would start rising as the weather is getting warmer. Demand could also firm up with the Islamic month of Ramadan approaching, he added.
Mills in Maharashtra kept prices steady, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. The mills had raised prices by INR 30-INR 40 per 100 kg a few days ago on concerns about lower sugar output, Kuvadia said. The Indian Sugar Mills & Bio-Energy Manufacturers Association has projected sugar production in the sugar year 2024-25 (Oct-Sept) at 27.3 million tonnes, down 14.4% from the 31.9 million tonnes produced in 2023-24.
Mills are also exporting sugar, which has raised concerns about domestic availability. This, Kuvadia said, is likely to support prices. The government has allowed the export of 1 million tonnes of sugar in 2024-25 to stabilise prices and ensure timely payments to farmers.
The Centre had banned sugar exports in June 2022 on concerns about lower production. India is the world's largest sugar producer after Brazil.
The following are the highlights of sugar prices in the domestic market Wednesday:
-Down INR 65-INR 70 at INR 3,900-INR 4,050 per 100 kg in western Uttar Pradesh
-Down INR 65-INR 70 at INR 3,900-INR 4,050 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 2013 IST, sugar prices on the Intercontinental Exchange were up 0.3% at 18.34 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 at 26.5 million tonnes, down nearly 17% from 31.9 million tonnes a year ago. End
US$1 = INR 86.89
Edited by Rajeev Pai
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