Informist, Friday, Feb 23, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh rose for the second consecutive day as demand was firm. However, mills in Maharashtra cut prices slightly due to subdued demand, said traders.

Some mills in west Uttar Pradesh raised prices by 15–25 rupees per 100 kg and a few in central Uttar Pradesh increased them by 10–15 rupees per 100 kg as demand improved, said Naresh Gupta, a local trader from north India. Demand is likely to improve further in March from ice-cream and cold-drink manufacturers.

The government on Wednesday announced an increase in the fair and remunerative price of sugarcane by 25 rupees to 340 rupees per 100 kg, and there are prospects of a hike in the minimum selling price of sugar. This will likely affect sentiment in the near term and support prices, but the real impact of these developments will only be seen when they come into effect from the sugar season 2024-25, said Gupta.

The Centre will consider demand from mills for a higher minimum sale price of sugar, in sync with the fair and remunerative price of sugarcane paid to farmers, Food Secretary Sanjeev Chopra said in a conference on Thursday.

In the coming month, rates of sugar will largely be driven by the sales quota set by the government and demand during the month, Gupta added. He said that with higher availability of sugarcane, the crushing season in Maharashtra has been extended. Crushing is still on in full swing in Maharashtra, and only six to seven mills have ended operations as of now against 27 mills in the corresponding period last year.

In Maharashtra, prices fell slightly by 5 rupees per 100 kg due to subdued demand, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Sugar rates are likely to increase in the beginning of March as people tend to buy in higher quantities at the start of a month, Kuvadia said.

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

-Down 5 rupees at 3,776-3,782 rupees per 100 kg in Mumbai

-Down 5 rupees at 3,515-3,570 rupees per 100 kg in Kolhapur

-Up 15-25 rupees at 3,720-3,800 rupees per 100 kg in Muzaffarnagar

-Up 10–15 rupees at 3,720-3,810 rupees per 100 kg in Kanpur

At 1704 IST, the most-active May contract of sugar on the Intercontinental Exchange was at 23.3 cents per pound, up 0.7% from the previous close. Concerns about global sugar production aided prices as Thai Sugar Millers Corp on Feb 6 projected Thailand's 2023-24 sugar production would fall by 32% to a 17-year low of 7.5 mln tn due to a severe drought.  End

US$1 = 82.93 rupees

Edited by Ashish Shirke

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