Informist, Tuesday, Aug 8, 2023
By Sayantan Sarkar
NEW DELHI – Prices of sugar remained flat for the third consecutive day in Maharashtra, while they fell in north India due to poor demand, dealers said.
Mills in north India lowered rates as there was not enough demand today, Naresh Gupta, a local trader, said.
North India has been receiving heavy rainfall and as temperature gets cooler it translates into less demand for ice creams and soft drinks. Sugar demand from these two industries fall as a result.
The India Sugar Mills Association on Wednesday had said that the country’s production of the sweetener during 2023-24 (Oct-Sep) is likely to be at 31.7 mln tn, which is 3.4% lower than the current season’s estimate.
On the subject of sugar exports, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said that it is not viable for the government to come up with export quota for the remainder of this season or the next sugar season, which starts in October.
For the 2022-23 season, shipments of sugar were capped at 6.1 mln tn mln tn, down from 11 mln tn in the previous year.
India is the world’s second-largest producer of sugar and a major player in the global market.
Following are highlights of the sugar trade in the domestic market today:
–Down 10-15 rupees at 3,620-3,685 rupees per 100 kg in Muzaffarnagar
–Flat at 3,780-3,870 rupees per 100 kg in Mumbai
–Flat at 3,660-3,705 rupees per 100 kg in Kolhapur
At 1700 IST, the October sugar futures contract on the Intercontinental Exchange was at 23.53 cents per pound, down 0.9% from the previous close.
Sugar prices fell today as the dollar rose against a basket of major currencies. A stronger dollar makes commodities priced in the greenback more expensive for overseas buyers, thereby limiting demand for the sweetener. End
Edited by Maheswaran Parameswaran
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