Informist, Tuesday, Jan 31, 2023
By Puja Das
NEW DELHI – Ex-mill prices of sugar were unchanged today across key markets of India as demand and supply were weak, dealers said. Supply was low as most sugar mills had exhausted the January sales quota.
* “Some mills that have exhausted their monthly sales quota increased prices by 5-10 rupees per 100 kg, while some mills sold the soft commodity at a 10-rupee lower rate to exhaust their quota. The overall price trend, however, was steady,” said Uttar Pradesh-based trader Naresh Gupta.
* The government had set the limit for sale of sugar by mills at 2.2 mln tn for January.
* Prices in Maharashtra are likely to remain stable until the government allocates sales quota for February, said Mukesh Kuvadia, the secretary of the Bombay Sugar Merchants Association. The release of the sugar monthly sales quota for February is due later today.
* The market expects February sales quota at 2.15-2.20 mln tn. “If the government sets February sales quota at 2.15 mln tn, prices might rise by 50-60 rupees per 100 kg, and if it sets the quota at 2.2 mln tn, prices are seen to be range-bound at the current level,” Kuvadia said.
* Price may rise from next week in anticipation of improved demand ahead of the wedding season and also as the temperature starts to rise, Kuvadia said.
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
–Unchanged at 3,280-3,410 rupees per 100 kg in Kolhapur
–Unchanged at 3,432-3,616 rupees per 100 kg in Mumbai
* At 1445 IST, the most-active March contract of raw sugar on the Intercontinental Exchange hit over six-year high of 21.52 cents per pound, up 1.5% from the previous close, on news of India’s likely lower production.
* Today, the Indian Sugar Mills Association lowered its estimate for India’s sugar output in the season started Oct 1 to 34 mln tn from 36.5 mln tn earlier. This has created supply concern among global investors.
* Further, sugar mills in Maharashtra, India’s top producing state, are set to wrap up sugarcane crushing 45 to 60 days earlier than the previous year as heavy rain has curtailed sugar cane availability. This has boosted the industry sentiment today.
* 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.
* This indicates prevention of additional export from the world’s second-leading exporter. End
Edited by Manisha Baxla
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