India Sugar
Up in key markets on improved demand at lower price levels
This story was originally published at 19:15 IST on 20 February 2025
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By Afra Abubacker
NEW DELHI – Ex-mill prices of sugar rose in the key markets of Maharashtra and Uttar Pradesh Thursday on improved demand at lower price levels, traders said. They said prices are at crossroads with purchases at lower levels, month-end selling pressure, and March sales quota due next week.
"Demand has picked up as rate had gone down (earlier). But we have to wait and see the release (sales) quota for the next month," Naresh Gupta, a North-India based trader said. In Uttar Pradesh, prices rose by INR 30 per 100 kg on increased purchases at lower levels, Gupta 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. In March 2024, the government had asked mills to sell 2.35 million tonnes of sugar.
In Maharashtra, prices rose by INR 10 per 100 kg due to improved demand. "Prices recovered today on a little demand increase," Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said.
Following are the highlights of sugar prices in the domestic market on Thursday:
-Up by INR 30 at INR 3,800-INR 3,920 per 100 kg in western Uttar Pradesh
-Up by INR 30 at INR 3,870-INR 3,980 in central Uttar Pradesh
-Up by INR 10 at INR 3,820-INR 3,880 per 100 kg in Kolhapur, Maharashtra
-Up by INR 10 at INR 3,880-INR 4,162 per 100 kg in Mumbai, Maharashtra
At 1729 IST, sugar prices on the Intercontinental Exchange were up 0.6% at 20.8 cents per pound amid concerns about sugarcane crops in Brazil and India. The Brazilian government has cut its sugar production estimate to 44 million tonnes from the previous forecast of 46 million tonnes, citing lower sugarcane yields due to drought and excessive heat. India is likely to produce 27.3 million tonnes in 2024-25, down 14.4% from 31.9 million tonnes last year. according to the Indian Sugar Mills & Bio-Energy Manufacturers Association. End
US$1 = INR 86.66
Edited by Ashish Shirke
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