Informist, Friday, Dec 1, 2023

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra fell today as there was low demand and selling pressure on the mills due to a higher sales quota for December at 2.4 mln tn, said traders.

Some mills in Uttar Pradesh reduced prices by 10–20 rupees per 100 kg, while a few others cut prices by 30 rupees per 100 kg. Prices fell as demand is generally less during this month from manufacturers of soft drinks and ice-creams. Only household demand is there in December, said Naresh Gupta, a local trader from north India.

However, in central Uttar Pradesh, price levels are slightly higher than the western part of the state because production starts 5–10 days later in west Uttar Pradesh, he said.

The downtrend is likely to continue in the coming days. Sugar prices rose earlier in November when the market deemed the sales quota for the second tranche to be insufficient.

Prices will stabilise and are likely to rise in mid-January, during Makar Sankranti, said Gupta.

In Maharashtra, prices fell slightly by 5 rupees per 100 kg today due to subdued demand, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

Selling pressure on the mills is higher as sales quota for December has been set at 799,455 tn for Maharashtra, which is 194,500 tn more than in November. Additionally, demand for the sweetener this month is less than the previous month, said Kuvadia.

The following are the highlights of the sugar trade in the domestic market today:

-Down by 5 rupees per 100 kg at 3,730-3,775 rupees per 100 kg in Kolhapur

-Down by 5 rupees per 100 kg at 3,866-3,966 rupees per 100 kg in Mumbai

-Down by 10 to 20 rupees per 100 kg at 3,800-3,940 rupees per 100 kg in Muzaffarnagar

-Down by 10 to 20 rupees per 100 kg at 3,850-3,975 rupees per 100 kg in Kanpur

On the Intercontinental Exchange, the March sugar contract was at 25.69 cents a pound, down 1.3% from the previous close.  

Sugar prices fell in the global market, tracking a fall in crude oil prices. Sugarcane is used for the production of ethanol, which is used for blending with fuel.

Weaker crude oil prices undercut ethanol prices and discourage mills to divert more sugarcane towards the production of ethanol, boosting supply of the sweetener in the market.  End

US$1 = 83.29 rupees

Edited by Aditya Sakorkar

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