India Sugar: Extends gains in north, down on ICE on improved supply

Informist, Friday, Jan 13, 2023

By Puja Das

NEW DELHI – Ex-mill prices of sugar rose in the key markets of north India today as most mills have exhausted two-thirds of their monthly sales quota. Prices were flat in the markets of Maharashtra, dealers said.

* The government has set the limit for sale of sugar by mills in January at 2.2 mln tn.

* Prices may start getting further support as demand is seen improving on account of the wedding season from next week, said Naresh Gupta, an Uttar Pradesh-based trader. Prices have fallen by 120-150 rupees per 100 kg in the past one and a half months.

* However, prices in Maharashtra are unlikely to improve as demand may be affected amid cold weather conditions in parts of Maharashtra, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

* Demand for the soft commodity is seen improving as temperatures start rising from February, Kuvadia said. 

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

–Up 20-40 rupees at 3,390-3,470 rupees per 100 kg in Muzaffarnagar

–Up 20-40 rupees at 3,460-3,510 rupees per 100 kg in Delhi

–Flat at 3,280-3,395 rupees per 100 kg in Kolhapur

–Flat at 3,452-3,612 rupees per 100 kg in Mumbai

* On the Intercontinental Exchange, the most-active March contract of raw sugar was down 0.1% at 19.58 cents per pound as supply prospects in key producing countries continued to improve, though rising oil prices limited the downtrend.

* Dealers said that good rains in top producer Brazil suggest a possible early start to the new harvest. Additionally, the Brazilian government’s fuel policy is set to prompt sugar mills to produce sugar instead of ethanol. 

* The newly formed government in Brazil has decided to extend a tax-cut measure for 60 days to keep fuel prices in check.  End

Edited by Avishek Dutta

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Source: Cogencis