India Sugar
Down in key markets on tepid demand, selling pressure
This story was originally published at 17:15 IST on 17 February 2025
Register to read our real-time news.Informist, Monday, Feb. 17, 2025
By Afra Abubacker
NEW DELHI – Ex-mill prices of sugar fell in the key markets of Maharashtra and Uttar Pradesh amid selling pressure as the month draws to a close, traders said. Lower demand at current price levels also pressured prices, they added. Traders see prices slightly falling further in the coming days.
In Maharashtra, prices fell by INR 10 per 100 kg amid lower demand and selling pressure. "It looks like only some 10 days are remaining for the month-end. Prices may fall further INR 5-INR 7 due to selling pressure," Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said.
The government has allowed mills across the country to sell 2.25 million tonnes of sugar in February. The government fixes the maximum quantity of sugar available for sale every month to check prices and help mills pay sugarcane farmers.
Prices had risen in January after the government opened sugar exports last month. Concerns over lower sugar production amid crop diseases and lower sugarcane yields also supported prices. However, the rally fizzled out as purchases slowed down at higher price levels. Additionally, the market has comfortable stocks carried forward from last year, traders said.
Though sugar production in 2024-25 (Oct-Sep) is estimated to fall 15% to 27.0 million tonnes due to lower cane yields, the country is likely to have a good supply of sugar as the season opened with nearly 8 million tonnes, according to trade bodies' estimates. India needs only 29 million tonnes for consumption, while the total supply is seen around 35 million tonnes.
In Uttar Pradesh, prices fell by INR 15-INR 20 per 100 kg on lower demand, said Naresh Gupta, a trader from north India. "Prices had gone up (earlier) due to speculation. Prices will fall further," Gupta said.
The following are the highlights of sugar prices in the domestic market on Monday:
-Down by INR 15-INR 20 at INR 3,850-INR 3,950 per 100 kg in western Uttar Pradesh
-Down by INR 15-INR 20 at INR 3,870-INR 4,020 in central Uttar Pradesh
-Down by INR 10 at INR 3,810-INR 3,870 per 100 kg in Kolhapur, Maharashtra
-Down by INR 10 at INR 3,870-INR 3,982 per 100 kg in Mumbai, Maharashtra
At 1624 IST, sugar prices on the Intercontinental Exchange were down 1.1% at 20.4 cents per pound amid concerns about Brazil's sugarcane crop. CONAB, the Brazilian government's crop forecasting agency, has cut its sugar production estimate to 44 million tonnes from a previous forecast of 46 million tonnes, citing lower sugarcane yields due to drought and excessive heat. End
US$1 = INR 86.87
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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