Informist, Thursday, Jul 13, 2023

By Sayantan Sarkar

MUMBAI – Prices of sugar rose slightly today in north India as mills raised selling prices, dealers said, Prices in Maharashtra remained flat.

Mills in north India raised prices due to firm demand in the area today, said Naresh Gupta, a north-India-based dealer. 

There are no triggers for prices in the sugar market, said Mukesh Kuvadia, secretary of Bombay Sugar Merchants Association. Prices may come down by 5–10 rupees in the next few days due to poor demand, said Kuvadia. 

According to a report by research firm BMI, India's export of sugar is likely to decline in recent years due to the government's plan to divert more sugarcane towards the production of ethanol to blend with petrol so that the country's reliance on oil imports decreases. BMI is a unit of Fitch Solutions. 

The government has set a target of 20% ethanol blending with petrol by 2025. At present, the country's ethanol blending stands at 11.5%, according to the US Department of Agriculture. 

India is the second-largest producer of sugar and a major player in the global export market.  

Following are highlights of sugar trade in the domestic market today:

--Up 5–10 rupees at 3,580-3,640 rupees per 100 kg in Muzaffarnagar

--Flat at 3,762-3,822 rupees per 100 kg in Mumbai

--Flat at 3,600-3,655 rupees per 100 kg in Kolhapur

At 1707 IST, the October sugar futures contract on the Intercontinental Exchange was trading at 24.08 cents per pound, 0.7% higher than the previous close. 

Sugar prices rose today due to a fall in the dollar index. A weaker dollar makes commodities priced in the greenback cheaper for holders of other currencies, lifting demand.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2023. All rights reserved.