India Sugar: Up in Muzaffarnagar on truck shortage; ICE at 2-wk low

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India Sugar: Up in Muzaffarnagar on truck shortage; ICE at 2-wk low

Tuesday, Mar 31

 

By Preeti Bhagat

NEW DELHI – Ex-mill prices of medium-grade sugar rose marginally in Uttar Pradesh today due to shortage of transport to deliver orders amid a 21-day nationwide lockdown to contain the spread of COVID-19, said.

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Prices rose 5 rupees per 100 kg in Muzaffarnagar.

 

Following the lockdown, movement of trucks has become a problem as polic at state borders are harassing drivers, said Vijay Kapoor, owner of Muzaffarnagar-based Anshika Sugars. 

 

“The situation is not so good despite the home ministry putting out a notification for free movement of essential items. At the ground level, are not being allowed to move, there is acute harassment… drivers are being beaten by lathis,” said Naveen Gupta, general secretary of All India Motor Transport Congress.

 

Truck drivers have also doubled their rates to carry goods.

 

Going ahead, traders expect sugar prices to remain subdued as due to low as malls, restaurants, and confectioneries are shut.

 

“This is the time when demand from ice-cream and soft drink manufacturers used to be there due to summer season… but demand is just finished now,” Kapoor said.  

 

Meanwhile, prices were unchanged in Delhi, Mumbai and Kolhapur markets today due to lack of fresh cues.

  

The most-active May contract of  on the Intercontinental Exchange Futures US was down 1.3% at 10.59 cents per pound. Prices had hit a near two-week low of 10.55 cents per pound today due to expectation of a global surplus in 2020-21 (Apr-Mar) following higher production in Brazil, the largest producer.

 

“Brazil’s two largest distributors declared force majeure on purchases of ethanol as the ‎ pandemic hammers demand–this confirms to us that the mix will heavily favour sugar from the start of the crop, especially the cash dependent mills will divert to sugar,” Marex Spectron said in a note.

 

Following are today’s ex-mill prices of medium-grade sugar in rupees per 100 kg, at key wholesale markets, and the change from the previous close:

 

PRICE CHANGE
Delhi 3,325 0
Mumbai 3,500 0
Muzaffarnagar 3,305 5
Kolhapur 3,300 0

End

 

US$1 = 75.61 rupees

 

Edited by Subham Mitra

 

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This copy was first published on the Cogencis WorkStation

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