Informist, Friday, Dec 29, 2023
By Sayantan Sarkar
MUMBAI – Ex-mill prices of sugar in key markets of north India and Maharashtra were largely unchanged for the second straight day after the release of the January sales quota, which is adequate, traders said.
The Centre has set the domestic sugar sales quota for January at 2.3 mln tn, 100,000 tn lower than the quota for this month, the Department of Food and Public Distribution said.
The Centre has cut the January sugar sales quota for Maharashtra by 84,104 tn from the previous month to 715,351 tn, while it has reduced the quota for Uttar Pradesh by 72,011 tn to 722,998 tn, according to the release. The two states are the top producers of sugar.
The quota for Karnataka has been increased by 88,570 tn to 487,424 tn from the previous month.
In north India, a few mills have quoted higher prices for the first week of January, but no trades have been executed so far, said Naresh Gupta, a local trader. “We will have to wait for two-three days to see if prices will rise,” he said.
“The sales quota for January is not excessive, but sugar prices are likely to trade in a short-range for the upcoming weeks,” Gupta further said.
Prices are flat today and the sugar sales quota for January is in line with the market expectation, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers.
The following are the highlights of the sugar trade in the domestic market today:
-Flat at 3,680-3,730 rupees per 100 kg in Kolhapur
-Flat at 3,790-3,900 rupees per 100 kg in Mumbai
-Flat at 3,725-3,800 rupees per 100 kg in Muzaffarnagar
-Flat at 3,725-3,825 rupees per 100 kg in Kanpur
The most-active March sugar contract on the Intercontinental Exchange was 0.7% down at 21.76 cents a pound.
Global sugar prices fell as sentiments were hit due to a surge in production from Brazil in 2023-24, according to analysts. Brazil is the top producer of the sweetener, followed by India in the second spot. End
Edited by Vidhi Verma
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