Informist, Monday, Jun 12, 2023
By Sayantan Sarkar
MUMBAI – Ex-mill prices of sugar rose in key markets of North India today as mills raised their selling prices. The sentiment was supported by concern about lower rainfall in the country this year, a dealer said.
Mills in western Uttar Pradesh raised prices of the sweetener by 15–20 rupees today as rates have held firm for the past few days, said Naresh Gupta, a North India-based dealer.
Sugar prices in North India rose last week on concern about lower rainfall in major sugarcane-growing regions of the country. Sugarcane is a water-intensive crop and lower rainfall may reduce production of the sweetener.
The market will monitor the progress of the southwest monsoon in India. It has so far covered all of Kerala and Tamil Nadu and parts of western and eastern India, according to the India Meteorological Department.
The weather bureau has forecast a very high probability of the development of El Nino weather conditions in the second half of the four-month monsoon season. El Nino, an abnormal warming of surface ocean temperatures in the eastern tropical Pacific, is usually associated with reduced rainfall in India.
The monsoon finally hit Kerala on Thursday after a delay of more than a week. The weather bureau had earlier forecast that the monsoon would hit Kerala’s coast on Jun 4.
Sugar prices in Maharashtra remained flat.
Following are the highlights of the sugar trade in the domestic market today:
–Up 15–20 rupees at 3,575-3,670 rupees per 100 kg in Muzaffarnagar
–Flat at 3,562-3,752 rupees per 100 kg in Mumbai
–Flat at 3,530-3,680 rupees per 100 kg in Kolhapur
At 1655 IST, the July futures contract of sugar on the Intercontinental Exchange was up 1.9% at 25.87 cents per pound. The contract rose for the fourth straight day on concern about lower production in India and other top sugar producers. India is the world’s second-largest producer of sugar.
In April, sugar prices had surged to an 11-year high of 27.41 cents per pound on concern about lower production in India, Thailand and Europe.
El Nino conditions are present and expected to strengthen gradually in the northern hemisphere in winter, the US-based National Oceanic and Atmospheric Administration had said in an advisory released on Thursday.
El Nino is also associated with heavy downpours in Brazil, the biggest producer of sugar. End
US$1 = 82.43 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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