Informist, Friday, Feb 9, 2024
By Taniva Singha Roy
MUMBAI – Mills in Uttar Pradesh raised sugar prices today after sales were good on Thursday, traders said. In Maharashtra, however, mills kept prices steady as demand and supply were balanced, said traders.
Several mills in Uttar Pradesh today increased sugar prices by 10–15 rupees per 100 kg as there was substantial demand after mills reduced prices on Thursday. But little business took place at the higher quoted prices, said Naresh Gupta, a local trader from north India. Until Thursday, the resale markets were only buying stock as per requirement, Gupta said.
In the resale markets, however, prices were steady, and there was demand for the sweetener at the old rates. Prices will start to prop up further as demand increases when the weather starts to warm up and there is a requirement for sugar from bulk manufacturers of cold-drinks and ice-cream around mid-February, Gupta added.
Prices have been on the downside in the past two months as there was no major festival buying and limited demand from bulk manufacturers, as is the case during winter months. Besides, the sales quota for February is more than enough to meet the current demand, traders said.
In Maharashtra, prices were steady for the second consecutive day, as demand was on a par with supply, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. In the coming week, sugar prices will more or less remain steady or fluctuate in the band of 5–10 rupees per 100 kg, Kuvadia said.
The following are the highlights of the sugar trade in the domestic market today:
-Flat at 3,702-3,812 rupees per 100 kg in Mumbai
-Flat at 3,480-3,560 rupees per 100 kg in Kolhapur
-Up 10–20 rupees at 3,710-3,770 rupees per 100 kg in Muzaffarnagar
-Up 10–20 rupees at 3,710-3,790 rupees per 100 kg in Kanpur
At 1752 IST, the most active March contract of sugar on the Intercontinental Exchange was at 24.1 cents per pound, up 0.7% from the previous close.
Reduced sugar production in India weighed on global sugar prices, according to Barchart.com. The Indian Sugar & Bio-energy Manufacturers Association reported last week that India’s 2023-24 sugar output during Oct-Jan fell 3.2% on year to 18.7 mln tn. The country is expected to produce 31.35 mln tn of sugar after diversion for ethanol production in the ongoing season ending in September, down from 32.82 mln tn in 2022-23. End
US$1 = 83.04 rupees
Edited by Tanima Banerjee
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