Informist, Friday, Oct 20, 2023

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh rose today due to less availability of good quality sugar. The prices of sugar remained steady in Maharashtra owing to stable demand and supply, said traders.

In Uttar Pradesh, prices have increased by 10 to 15 rupees per 100 kg, particularly for refined sugar, said Naresh Gupta, a trader from north India.

With the season ending, there is only limited availability of good quality sugar in the markets as the quality of the present stock has degraded due to reasons such as an increase in moisture content, the trader said.

The mills in western Uttar Pradesh have increased the price of sugar by 10 to 15 rupees per 100 kg to compensate for demand for good quality sugar.

Further, Naresh Gupta said that sugar is selling at a reasonable rate in the market as the government on Thursday said that Indian sugar is among the cheapest and only 2% inflation has been recorded for sugar in a decade.

The prices remained unchanged in Maharashtra due to balanced demand and supply. However, prices might increase in the next 20 to 25 days as Diwali, a key festival in the country, is approaching, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 

Additionally, the government has extended the curb on sugar exports indefinitely due to concerns of production shortages in some states such as Karnataka and Maharashtra. 

The concerns about shortages in supply in the domestic market have eased owing to the curb on sugar export, said Kuvadia.

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 3,882-4000 rupees per 100 kg in Mumbai

-Flat at 3,740-3,840 rupees per 100 kg in Kolhapur

-Up by 10 to 15 rupees at 3,830-3,920 rupees per 100 kg in Muzaffarnagar

-Up by 10 to 15 rupees at 3,950-4,050 rupees per 100 kg in Kanpur

On the Intercontinental Exchange, the March sugar contract was at 26.91 cents a pound, down 1.4% from the previous close.

Sugar prices eased in global markets today after India's government on Thursday said that as of Oct 1, the country has 5.7 mln tn of stock of the sweetener. This raised expectations that India may be able to export some sugar in the coming months when production estimates for 2023-24 (Oct-Sep) become clearer.  End

US$1 = 83.12 rupees

Edited by Manisha Baxla

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