Informist, Monday, Apr 3, 2023
By Afra Abubacker
MUMBAI – Ex-mill prices of sugar rose today in the key wholesale markets of Maharashtra and north India, dealers said. Prices in the wholesale markets of Mumbai and Kolhapur rose today due to firm demand.
Moreover, market participants had expected a higher monthly sales quota for April due to increased demand prospects in summer, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
The government has set the limit for sales of sugar by mills at 2.2 mln tn for April, unchanged from March, according to a notification by the Food and Public Distribution Department.
Following are the highlights of sugar trade in the domestic market:
–Up 10–20 rupees at 3,465-3,535 rupees per 100 kg in Muzaffarnagar
–Up 10–20 rupees at 3,515-3,590 rupees per 100 kg in Delhi
–Up 5 rupees at 3,335-3,440 rupees per 100 kg in Kolhapur
–Up 5 rupees at 3,515-3,655 rupees per 100 kg in Mumbai
At 1636 IST, the most-active May contract of raw sugar on the Intercontinental Exchange was up 1.26% at 22.53 cents per pound. Earlier today, the contract had hit a record high of 22.56 cents per pound.
Prices rose tracking a rise in crude oil contracts on the NYMEX. A rise in crude oil prices prompts sugar mills in Brazil, the second-largest producer of sugarcane, to divert less cane towards the production of sugar and more towards ethanol.
Further, the Brazilian government has increased the mandatory blend of biodiesel in diesel blends to 12% from 10% in effect from April. This is likely to prompt sugar mills in Brazil to produce more ethanol and less sugar.
Sugar prices are also rising due to climate concerns. Concerns over El Nino occurrence and heavy rains in Brazil and drought-like conditions in India, also supported sugar prices. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Manisha Baxla
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