Informist, Thursday, May 25, 2023
By Sayantan Sarkar
MUMBAI – Ex-mill prices of sugar rose in the key markets of north India today amid a fall in supply as most mills have completed their monthly sales quota for May, traders said.
In Maharashtra prices of the sweetener were flat as supply and demand remained balanced.
“Nothing much is happening in (Maharashtra) markets as mills are waiting for the release of the new sales quota for June,” said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
India is the world’s second-largest producer of sugar, behind Brazil. Sugar prices are closely monitored by the government as it is one of the key ingredients in the Indian diet and, hence, is a politically sensitive commodity.
On Wednesday, Informist exclusively reported that sugar mills in Maharashtra have paid 322.3 bln rupees to sugarcane farmers as of May 15, which is 96.2% of the total payable fair and remunerative prices.
The total payable fair and remunerative price is 334.7 bln rupees, and the arrears or due payments by mills account for 12.4 bln rupees.
Following are the highlights of sugar trade in the domestic market today:
–Up 10–15 rupees at 3,600-3,665 rupees per 100 kg in Muzaffarnagar
–Flat at 3,590-3,700 rupees per 100 kg in Mumbai
–Flat at 3,470-3,540 rupees per 100 kg in Kohlapur
At 1634 IST, the July futures contract of sugar on the Intercontinental Exchange was down 1.4% at 25.14 cents per pound. Sugar prices fell due to a stronger dollar, which made the commodity more expensive for holders of other currencies, and thereby limiting demand for the sweetener.
Also, a surge in fresh COVID-19 cases in China dampened the demand outlook from the world’s second-largest economy.
End
US$1 = 82.74 rupees
Edited by Maheswaran Parameswaran
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