Informist, Tuesday, Aug 29, 2023
By Afra Abubacker
MUMBAI – Ex-mill prices of sugar remained largely unchanged today in the key markets of Maharashtra, but fell in north India, said dealers.
“Prices were largely unchanged today as the market is waiting for the September month sales quota,” said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
“Prices fell marginally today due to higher selling pressure,” said Naresh Gupta. “Seeing the past trend, market is expecting September sales quota to be set around 2.5 mln tn,” said Gupta.
The sales quota for August totalled 2.55 mln tn, with the addition of 200,000 tn on Aug 22. The government said the decision was taken in view of strong demand ahead of festivals such as Onam, Raksha Bandhan, and Janmashtami. Sugar is a highly regulated commodity in India, as it is widely consumed across the country.
Following are highlights of the sugar trade in the domestic market today:
–Flat at 3,792-3,876 rupees per 100 kg in Mumbai
–Flat at 3,620-3,720 rupees per 100 kg in Kolhapur
–Down 10-15 rupees at 3,680-3,730 rupees per 100 kg in Muzaffarnagar
–Down 10-15 rupees at 3,700-37,80 rupees per 100 kg, in Kanpur
At 1708 IST, the October sugar contract on the Intercontinental Exchange was at 25.45 cents per pound, down 0.5% from the previous close. Earlier in the day, the contract hit a two-month high of 25.68 cents per pound.
After a spike, sugar prices are starting to ease amid a report from Reuters, quoting unnamed government sources, that India is set to implement an export ban on sugar.
India allowed sugar exports of 6.1 mln tn during the current season ending Sep 30. Exports of the sweetener were at a record 11.1 mln tn last year.
India recently hiked export duties on onions and could add further measures for rice exports. “The latest moves follow an acceleration in domestic food price inflation,” S&P says, adding that “further policy actions cannot therefore be ruled out,” Dow Jones reported.
According to ISMA, sugar output in 2023-24 (Oct-Sep) is estimated at 31.7 mln tn, down 3.4% from 32.8 mln tn in the ongoing season.
Concerns over lower production in India due to below-normal rainfall in Maharashtra and Uttar Pradesh, the major producers of the commodity, are driving prices on the higher. End
Edited by Aditya Sakorkar
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