Informist, Tuesday, Oct 17, 2023

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar fell slightly in Uttar Pradesh today due to lack of its demand at higher levels. Prices in Maharashtra remained largely steady as demand and supply were stable, said traders.

In western Uttar Pradesh, the price of sugar fell by 5 to 10 rupees per 100 kg as demand fell slightly today. Last week, mills had quoted higher sugar prices due to a sudden surge in demand ahead of festivals, and this week trades are still being executed at those levels, which was a drag on sentiment, said Naresh Gupta, a local trader in Uttar Pradesh. 

"Sugar is selling at a lower price in the resale market. The price is likely to increase when demand picks up, once the stock available at a lower price is sold out," he said.  

The price of the sweetener remained steady in Maharashtra due to stable demand and supply, and lack of fresh cues. Prices may increase if demand improves due to festivals, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 

Additionally, the government may impose stock limits on sugar trade if all entities in the business do not disclose their inventories on the official portal by Tuesday, Business Standard reported today, citing a senior official.

On Friday, Informist had reported that the government urged sugar traders, retailers, wholesalers, big chain retailers, and processors to disclose their stocks by today. On Sep 22, the government had asked these entities to disclose their stock positions every Monday with immediate effect in a bid to monitor prices. 

"Currently, sugar exports are under the 'restricted' category till Oct 31, and after that we will extend the same indefinitely", the newspaper, Business Standard quoted the official in its report.

Sugar is a highly regulated commodity in India and the government comes up with various methods to keep prices from rising sharply.   

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

-Flat at 3,880-4000 rupees per 100 kg in Mumbai

-Flat at 3,730-3,820 rupees per 100 kg in Kolhapur

-Down 5-10 rupees at 3,780-3,825 rupees per 100 kg in Muzaffarnagar

-Flat at 3,800-3,900 rupees per 100 kg in Kanpur

On the Intercontinental Exchange, the March sugar contract was at 27.29 cents per pound, up 1.2% from the previous close. 

Concerns about lower production of sugarcane in Thailand and India, and the likelihood of a potential ban on exports by the Asian giant propped up prices today. 

India is the second-largest producer of sugar in the world behind Brazil, and it is also a major player in the export market.  End

US$1 = 83.25 rupees

Edited by Deepshikha Bhardwaj

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