Informist, Thursday, Nov 9, 2023
By Taniva Singha Roy
MUMBAI- Ex-mill prices of sugar in the key markets of Uttar Pradesh fell marginally today as sugarcane crushing has started in the state. In Maharashtra, prices remained steady as the demand was at par with supply, said traders.
Some mills in Uttar Pradesh have reduced prices slightly by 5-10 rupees per 100 kg as sugarcane crushing, which started in the last week of October, has led to increased supply. However, some mills have kept prices steady, said Naresh Gupta, a local trader from Uttar Pradesh.
Prices are likely to fall if mills are unable to meet the sales quota of 1.5 mln tn by Nov 15, he added.
However, pipeline stocks with resellers are low as they are not stocking up sugar due to the downward trend in prices. This could lead to a fall in supply and prices might increase, Gupta said.
In Maharashtra, prices remained unchanged as demand and supply was balanced and as mills are not in a hurry to offload stocks because they have one more week to meet the quota, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
Mills are now waiting for the government to release the sales quota for the second tranche of November, Kuvadia added.
The following are highlights of the sugar trade in the domestic market today:
-Flat at 3,876-3,990 rupees per 100 kg in Mumbai
-Flat at 3,730-3,805 rupees per 100 kg in Kolhapur
-Down by 5-10 rupees at 3,865-3,940 rupees per 100 kg in Muzaffarnagar
-Down by 5-10 rupees at 3,835-3,955 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 27.28 cents a pound, up 0.3% from the previous close. Sugar prices rose in the global market tracking an increase in crude oil prices. Sugarcane is used for production of ethanol, which is used for blending with petrol.
Rise in crude oil prices encourages mills to divert more sugarcane towards the production of ethanol, which reduces the supply of the sweetener in the market.
Sugar prices also rose due to concerns of global supply shortage. On Oct 23, the International Sugar Organization said global sugar production will fall 1.2% to 174.8 mln tn in 2023-24 (Oct-Sep), and there will be a global sugar deficit of 2.1 mln tn. End
US$1 = 83.28 rupees
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2023. All rights reserved.
Source: Cogencis
