India Sugar: Up as govt sets lower sales quota for June; down on ICE

Informist, Wednesday, Jun 1, 2022

By Puja Das

NEW DELHI – Ex-mill prices of sugar in key wholesale markets of north India and Maharashtra rose today as sales quota for June has been set lower considering weak demand during monsoon, dealers said.

* The government has set the limit for sale of sugar by mills in June at 2.1 mln tn, lower than the 2.25 mln tn set in May.

* As the limit for sale of sugar in June is lower than May, selling pressure is unlikely to build up much, Delhi-based trader Naresh Gupta said.

* Household demand is there, and likely to be there till the first week of June, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

* It is crucial to see how demand will be from next week depending upon monsoon. Therefore, it is soon to speculate price movement now, Kuvadia added.

* Following are the highlights of the sugar trade in the domestic market:

  (Changes in price per 100 kg)

  –Up 30 rupees at 3,460-3,500 rupees in Muzaffarnagar

  –Up 20-30 rupees at 3,680-3,755 rupees in Delhi

  –Up 20-30 rupees at 3,320-3,385 rupees in Kolhapur

  –Up 20-30 rupees at 3,530-3,682 rupees in Mumbai

* On the Intercontinental Exchange, the most active July contract of raw sugar was 0.3% down at 19.35 cents per pound as investors booked profits after prices hit a one-week high of 19.92 cents per pound on Tuesday. End

US$1 = 77.52 rupees

Edited by Maheswaran Parameswaran

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Source: Cogencis