Informist, Wednesday, Feb 7, 2024
By Taniva Singha Roy
MUMBAI – Sugar prices in both the major cane-producing regions, Uttar Pradesh and Maharashtra, plunged and ex-mill rates continued to decline due to poor demand amid prospects of increasing production, said traders.
Sugar prices in Uttar Pradesh fell for the second consecutive day by 15–20 rupees per 100 kg. Since the beginning of the month, prices have declined by about 50–60 rupees per 100 kg, said Naresh Gupta, a local trader from north India. Mills have slashed rates as there is almost negligible demand from bulk manufacturers due to winter, he said.
Prices in the retail markets also fell due to subdued demand. “Resellers are only buying as per requirement and not keeping stocks in the pipeline. Besides, due to continuous downtrend, buyer confidence is less,” said Gupta.
Demand is only likely to pick up in mid-February, and prices might stabilise on the rise in intake from manufacturers of soft drinks. For the remainder of this week, the downtrend will continue, Gupta added.
In Maharashtra, prices fell by 10 rupees per 100 kg, as the demand was low, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices have fallen by around 50–60 rupees per 100 kg in February and are not likely to reduce further and will fluctuate in the band of 5–10 rupees this week, Kuvadia said.
The following are the highlights of the sugar trade in the domestic market today:
-Down 10 rupees at 3,702-3,812 rupees per 100 kg in Mumbai
-Down 10 rupees at 3,480-3,560 rupees per 100 kg in Kolhapur
-Down 15–20 rupees at 3,720-3,785 rupees per 100 kg in Muzaffarnagar
-Down 15–20 rupees at 3,740-3,820 rupees per 100 kg in Kanpur
At 1701 IST, the most active March sugar contract on the Intercontinental Exchange was at 23.85 cents per pound, up 1.2% from the previous close.
Global sugar prices rose, tracking gains in crude oil. Strength in crude oil prices encourages the diversion of sugarcane towards the production of ethanol. This decreases the supply of the sweetener in markets. End
US$1 = 82.96 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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