Informist, Thursday, Feb 2, 2023
By Puja Das
NEW DELHI – Ex-mill prices of sugar rose in the key markets of Maharashtra today as supply was weak amid lower allocation under sales quota for February. Prices in north India remained flat, dealers said.
* The government has set the limit for sale of sugar by mills at 2.1 mln tn for February–100,000 tn lower than expected.
* “Prices are likely to rise further by 10-15 rupees per 100 kg in Maharashtra on expectation of higher demand as the temperature rises,” said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
* Prices in north India may rise gradually by 30-40 rupees from next week in anticipation of demand improving for the wedding season and as the mercury starts rising, said Uttar Pradesh-based trader Naresh Gupta.
Following are the highlights of sugar trade in the domestic market:
–Unchanged at 3,400-3,460 rupees per 100 kg in Muzaffarnagar
–Unchanged at 3,460-3,500 rupees per 100 kg in Delhi
–Up 30-50 rupees at 3,350-3,440 rupees per 100 kg in Kolhapur
–Up 15-30 rupees at 3,482-3,632 rupees per 100 kg in Mumbai
* At 1645 IST, the most-active March contract of raw sugar on the Intercontinental Exchange was up 0.3% at 21.44 cents per pound on news of likely lower production in India.
* Earlier this week, the Indian Sugar Mills Association lowered its estimate for sugar output in the season started Oct 1 to 34 mln tn from 36.5 mln tn earlier. This has led to concerns over supply among global investors.
* Further, mills in Maharashtra, India’s top producing state, are set to wrap up sugarcane crushing 45-60 days earlier compared to the previous year as heavy rains have curtailed cane availability. This too boosted the market sentiment
* Maharashtra, which accounts for over a third of the country’s sugar output, is estimated to produce 12.8 mln tn of the soft commodity in the 2022-23 marketing year, down from an earlier forecast of 13.8 mln tn. End
Edited by Vandana Hingorani
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