Informist, Tuesday, Nov 28, 2023

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar fell in the key markets of Maharashtra today due to subdued demand. Prices in most markets of Uttar Pradesh fell as mills were in a hurry to meet the sales quota for the month before Nov 30, said traders.

In Maharashtra, prices fell by 5–10 rupees per 100 kg as demand for the commodity is less in winters from manufacturers of soft drinks and ice-creams.

Moreover, prices are likely to fall in the coming weeks as the sales quota of 799,455 tn for Maharashtra for December is more than enough to meet the demand, especially during the next few months when demand for the sweetener is low, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

In Muzaffarnagar, Uttar Pradesh, some mills reduced prices by 10–20 rupees per 100 kg due to the pressure of off-loading the stocks for November, as only two days are remaining for the sales quota to be completed, said Naresh Gupta, a local trader from north India.

Prices will be under pressure during the next month as the sales quota of 2.4 mln tn is much more than required in December, he added.

However, the release quota allotted to mills in Uttar Pradesh is 795,009 tn down 27,554 tn from the previous month. The reduced sales quota might lead to rates increasing in some pockets of the state if it is insufficient, Gupta said.

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

-Down by 5–10 rupees at 3,670-3,820 rupees per 100 kg in Kolhapur

-Down by 5–10 rupees at 3,892-3,996 rupees per 100 kg in Mumbai

-Down by 10–20 rupees at 3,865-3,995 rupees per 100 kg in Muzaffarnagar

-Up by 15–20 rupees at 3,875-4,020 rupees per 100 kg in Kanpur

On the Intercontinental Exchange, the March sugar contract was at 26.89 cents a pound, down 1.1% from the previous close.

Sugar prices moved lower on increased sugar production in Brazil. UNICA, Brazilian Sugarcane Industry and Bioenergy Association, on Monday reported that sugar output in central and southern Brazil in the first half of November rose 30.9% on year to 2.19 mln tn and that sugar output in the 2023-24 crop year through mid-November rose 23.1% on year to 39.4 mln tn.   End

US$1 = 83.33 rupees

Edited by Maheswaran Parameswaran

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