Informist, Friday, Sep 29, 2023
By Sayantan Sarkar
NEW DELHI – Ex-mill prices of sugar in key markets of the country fell today due to selling pressure with mills rushing to meet their sales quota for October.
“In Maharashtra, prices were down today on poor demand, and as mills are selling more of the sweetener to meet their sales quota,” Mukesh Kuvadia, secretary of Bombay Sugar Merchants Association said.
The government had last week set sugar sales quota for October at 1.3 mln tn in the first tranche, which the mills have to meet before Oct 10. Further, it has asked sugar traders, retailers, wholesalers, big chain retailers, and processors to disclose stock positions every Monday in a bid to monitor prices.
Sugar is a highly regulated commodity in the country, and India is also one of the top exporters of the commodity in global markets.
“The sales quota has been set at 1.3 mln tn, and mills have to complete it by Oct 10 instead of Oct 15, which is creating a supply glut currently,” Kuvadia said.
The following are highlights of the sugar trade in the domestic market today:
-Down 5-10 rupees at 3,872-3,952 rupees per 100 kg in Mumbai
-Down 5-10 rupees at 3,820-3,875 rupees per 100 kg in Kolhapur
-Down 10-15 at 3,750-3,825 rupees per 100 kg in Muzaffarnagar
-Flat at 3,800-3,860 rupees per 100 kg in Kanpur
On the Intercontinental Exchange, the March sugar contract was at 26.79 cents per pound, down 0.6% from the previous close.
Sugar prices also took a hit on concerns over poor demand from China as data showed that the country’s imports fell in August. Additionally, expectation of a rise in production in Brazil also weighed on prices. Brazil is the world’s biggest producer of sugar. End
US$1 = 83.04 rupees
Edited by Deepshikha Bhardwaj
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