India Sugar: Steady in key mkts as weak demand offsets limited supply

Informist, Monday, Jan 29, 2024

By Afra Abubacker

MUMBAI – Ex-mill prices of sugar in the key markets of Maharashtra and Uttar Pradesh were largely unchanged today as weak demand offset limited supply, said traders. Sugar prices in major Mumbai markets remained unchanged today due to lack of any fresh triggers, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said.

Limited demand from bulk buyers like ice cream manufacturers and cool drink makers weighed on sweetener prices in Maharashtra. Meanwhile, subdued prices in Maharashtra and Karnataka are checking prices in Uttar Pradesh, Naresh Gupta, a local trader, said.

The Indian Sugar & Bio-energy Manufacturers Association is set to release its second advance estimate of sugar production on Thursday, the association told Informist. As per the first advance estimates released on Oct 31, gross sugar output in 2023-24 (Oct-Sep) was pegged at 33.7 mln tn, down from 36.9 mln tn last year.

The estimates are based on satellite mapping of the mid-harvest crops in major sugarcane growing states. Sugar production is expected to improve in Maharashtra and Karnataka as cane yield and sucrose content increased due to unseasonal rains in November, said traders.

The following are the highlights of the sugar trade in the domestic market today:

-Flat at 3,610-3,842 rupees per 100 kg in Mumbai

-Flat at 3,580-3,660 rupees per 100 kg in Kolhapur

-Flat at 3,700-3,811 rupees per 100 kg in Muzaffarnagar

At 1826 IST, the most-active March contract of sugar on the Intercontinental Exchange was flat at 23.53 cents per pound. End

Edited by Tanima Banerjee

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