Informist, Wednesday, Feb 28, 2024
By Taniva Singha Roy
MUMBAI – Ex-mill prices of sugar were quoted higher in key markets of Uttar Pradesh today, while these were steady in Maharashtra as demand was balanced with supply, said traders.
Some mills in west and central Uttar Pradesh have quoted sugar prices higher by 10-20 rupees per 100 kg for March, said Naresh Gupta, a local trader. Gupta said the sales quota of 2.35 mln tn set by the government will be sufficient to meet demand, and prices will not increase further. The Centre has set the domestic sugar sales quota for March at 2.35 mln tn, 150,000 tn higher than the quota for the previous month, according to the Department of Food and Public Distribution.
At the moment, the already bargained and ready to lift stocks are being sold at a lower rate. However, mills are likely to quote higher rates from next week, he said. Prices in the resale market today were down 10 rupees per 100 kg as demand was subdued.
In Maharashtra, price were steady today as demand was balanced with supply, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. The sales quota, he said, was sufficient for the month and prices could only fluctuate by 10–20 rupees per 100 kg in the coming week, depending on the demand.
The following are highlights of sugar trade in the domestic market today:
-Flat at 3,776-3,782 rupees per 100 kg in Mumbai
-Flat at 3,515-3,570 rupees per 100 kg in Kolhapur
-Up 10-20 rupees at 3,720-3,795 rupees per 100 kg in Muzaffarnagar
-Up 10-20 rupees at 3,730-3,815 rupees per 100 kg in Kanpur
At 1609 IST, the most active May contract of sugar on the Intercontinental Exchange was up 0.3% from the previous close at 22.8 cents. Concerns about lower sugar production globally aided prices as Thai Sugar Millers Corp Ltd projected Thailand’s 2023-24 sugar production to fall 32% to a 17-year low of 7.5 mln tn due to a severe drought. The country is one of the top suppliers of sugar in the world.
Signs that India’s ban on sugar exports will be maintained an global supply will remain tight are also bolstering prices of the sweetener. India recently announced a 50% export tax on molasses from sugar refining, according to Barchart.com. End
US$1 = 82.92 rupees
Edited by Deepshikha Bhardwaj
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