India Sugar
Steady in key markets as demand poor; prices up on ICE
This story was originally published at 20:14 IST on 13 February 2025
Register to read our real-time news.Informist, Thursday, Feb. 13, 2025
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar were steady in the key markets of Uttar Pradesh and Maharashtra Thursday, as demand was poor at higher rates, said traders. Prices could fall in the coming days if demand does not pick up, they said.
Mills in Uttar Pradesh kept prices steady as there was little demand, said Naresh Gupta, a trader from north India. Prices fell by INR 65-INR 70 per 100 kg the previous day owing to lower demand at elevated rates, and as mills had already slashed prices significantly, they held back prom cutting rates Thursday, Gupta said.
However, traders hope that demand from bulk consumers such as ice-cream and cold-drink makers will start rising as the weather is getting warmer. Demand could also firm up with Ramadan approaching, he added.
Mills in Maharashtra kept prices steady, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 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 Thursday:
-Flat at INR 3,900-INR 4,050 per 100 kg in western Uttar Pradesh
-Flat 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 1903 IST, sugar prices on the Intercontinental Exchange were up 0.6% at 19.89 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 year ago. End
US$1 = INR 86.89
Edited by Ashish Shirke
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