Informist, Friday, Mar 31, 2023
By Afra Abubacker
MUMBAI – Ex-mill prices of sugar rose today in the key wholesale markets of Maharashtra, but were flat in north India, dealers said.
Prices in the wholesale markets of Mumbai and Kolhapur rose today as demand improved, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
Sugar prices in north India remained unchanged today due to a lack of fresh triggers in the market, said Naresh Gupta, an Uttar Pradesh-based trader.
The government has set the limit for sale of sugar by mills at 2.2 mln tn for April, unchanged from March, according to a notification by the Food and Public Distribution Department.
Following are the highlights of sugar trade in the domestic market:
–Flat at 3,445-3,515 rupees per 100 kg in Muzaffarnagar
–Flat at rupees at 3,495-3,540 rupees per 100 kg in Delhi
–Up 20–30 rupees at 3,330-3,435 rupees per 100 kg in Kolhapur
–Up 20–30 rupees at 3,510-3,650 rupees per 100 kg in Mumbai
At 1630 IST, the most-active May contract of raw sugar on the Intercontinental Exchange was up 0.1% at 21.98 cents per pound. Earlier today, the contract had hit a new one-month high of 22.00 cents per pound.
Prices rose tracking a rise in crude oil contracts on the NYMEX. A rise in crude oil prices prompts sugar mills in Brazil, the second-largest producer of sugarcane, to divert less cane towards production of sugar and more towards ethanol.
Sugar prices also rose due to concerns over lower production. Output of the commodity is seen down to due to excess rains in India, low fertiliser input in Thailand, and unfavourable weather in Europe.
Sugar production is seen down by 6.4% on year at 33.6 mln tn after diversion of cane to ethanol production in 2022-23 (Oct-Sep), while Europe’s sugar output is expected to decrease by 7% to 15.5 mln tn.
Exports from India could slump to as low as 4 mln tn in 2023-24 (Oct-Sep), according to a Bloomberg survey. The sugar export quota for the current year is 6 mln tn, while India exported a record high of 11 mln tn of sugar in the previous year. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Aditya Sakorkar
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