India Sugar: Flat; down on ICE as crude falls, Brazil output seen up

Informist, Wednesday, May 3, 2023

By Afra Abubacker

MUMBAI – Ex-mill prices of sugar in the key wholesale markets of north India and Maharashtra were unchanged today due to lack of fresh triggers, dealers said.

According to a report by The Indian Express, the Centre is set to ban sugar exports amid lower production in the country. However, any notification banning shipments is yet to be released.

In order to keep sugar prices range-bound, the government had set the May monthly sales quota at 2.4 mln tn, unchanged from April, according to a notification by the Food and Public Distribution Department on Apr 26. The market had expected the government to set the quota for May lower than that for April.

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

–Flat at 3,490-35,550 rupees per 100 kg in Muzaffarnagar

–Flat at 3,520-3,580 rupees per 100 kg in Delhi

–Flat at 3,525-3,545 rupees per 100 kg in Kolhapur

–Flat at 3,425-3,450 rupees per 100 kg in Mumbai

At 1556 IST, the most-active July contract of raw sugar on the Intercontinental Exchange was down 0.16% at 25.1 cents per pound. Prices fell tracking a decline in crude oil prices, which prompts mills in Brazil to divert less sugarcane for ethanol production.

Sugar prices also eased due to estimates of higher sugar production in Brazil. According to a forecast by Conab on Apr 26, Brazil’s sugar output in 2023-24 is seen up 4.7% on year at 38.8 mln tn.

However, lower sugar production in India and prospects of an export ban by the government are likely to limit the fall in sugar prices.

The Indian Sugar Mills Association has cut sugar production estimates for the current season ending September to 32.8 mln tn from 34.0 mln tn. India is the world’s second-largest sugar producer. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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