Informist, Monday, Oct 23, 2023
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh rose today due to lack of availability of good quality sugar. In Maharashtra, prices remained flat in Mumbai and fell in Kolhapur due to lower demand.
Sugar mills in west Uttar Pradesh raised the prices by 20 to 25 rupees per 100 kg today due to increased demand ahead of festivals.
Good quality sugar supply is short of demand, causing its price to go up, said Naresh Gupta, a local trader in North India.
A large part of sugar stock in the market is old and has degraded due to reasons such as an increase in moisture content, market participants said.
Owing to lack of availability of good quality sugar, the prices in central Uttar Pradesh have also started to increase gradually, he added.
Arrival of new stocks is likely to start by the first week of November as production will pick up only after Diwali. The availability of fresh stock will cool down the prices, he said.
Further, Naresh Gupta said that sugar is the only commodity in which inflation is contained to 2%, and it is only during this time of the year when there is a surge in domestic prices.
However, prices of sugar remained unchanged in Mumbai as demand and supply were balanced. Whereas, in Kolhapur, the prices fell due to less demand as the Dusherra demand has been met and there is no out-station demand, said Mukesh Kuvadia, the secretary of the Bombay Sugar Merchants Association.
The demand will pick up again before Diwali, another key festival, he added.
The following are highlights of the sugar trade in the domestic market today:
-Flat at 3,882-4000 rupees per 100 kg in Mumbai
-Down at 3,720-3,770 rupees per 100 kg in Kolhapur
-Up by 20 to 25 rupees at 3,800-3,940 rupees per 100 kg in Muzaffarnagar
-At 3,825-3,940 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 26.95 cents a pound, up 0.5% from the previous close.
The increase in sugar prices in the international market can be ascribed to India’s curb on the export of sugar, which increased concern about supply globally, said market sources.
Further, smaller sugar output from Thailand, the world’s second-biggest sugar exporter, is bullish for prices after the Thai Sugar Millers Corp on Sep 7 projected the country’s 2023-24 sugar production to fall by 18% on year to 9 mln tn due to a severe drought. End
US$1 = 83.19 rupees
Edited by Akul Nishant Akhoury
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