Informist, Thursday, Feb 22, 2024

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh rose today as demand improved slightly with pipeline stocks drying up with mills. Price of sugar in Maharashtra remained steady for the second consecutive day on balanced demand and supply, said traders.

Mills all over Uttar Pradesh raised prices by 10–15 rupees per 100 kg today as demand rose after prices dropped significantly in the previous few days. The routine demand for sugar improved after the resale market was left with no stocks in the pipeline, said Naresh Gupta, a local trader.

The slight increase in prices is helping to only recoup the losses that the sweetener has undergone in the past couple of months. Price of sugar in the domestic market still remains quite low, Gupta said. 

Additionally, Gupta said that the hike in fair and remunerative price for sugarcane by 25 rupees per 100 kg to 340 rupees is likely to affect sentiment in the near term and prices might increase slightly. But as FRP will come into effect for sugar season 2024-25, the impact of the development will only be seen later.

In the coming months, price of the sweetener will be driven by the sales quota set by the government for March and the demand during that time, Gupta said.

In Maharashtra, prices remained steady today as demand and supply were on a par, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Mills are awaiting the release of the sales quota for the next month, depending on which, the prices will rise or fall, Kuvadia said.

The following are the highlights of the sugar trade in the domestic market today:

-Flat at 3,680-3,780 rupees per 100 kg in Mumbai

-Flat at 3,520-3,565 rupees per 100 kg in Kolhapur

-Up 10-15 rupees at 3,710-3,750 rupees per 100 kg in Muzaffarnagar

-Up 10–15 rupees at 3,710-3,800 rupees per 100 kg in Kanpur

At 1448 IST, the most active May contract of sugar on the Intercontinental Exchange was at 22.22 cents per pound, down 0.1% from the previous close.

Global sugar has been under pressure over the past week from a significant increase in Brazil's sugar production, according to Barchart.com. UNICA, the Brazilian sugarcane industry association, reported on Feb 15 that Brazil's center-south sugar output jumped 68.5% on year in the second half of January to 28,000 tn and that sugar output in the 2023-24 crop year through January rose 25.5% on year to 42.1 mln tn.  End

US$1 = 82.84 rupees

Edited by Deepshikha Bhardwaj

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