Limited fluctuations in the market due to balance in demand and supply of sugar

09-Oct-2024 07:37 PM

New Delhi. The southwest monsoon has departed from northern India and in the next three to four days it will also depart from Gujarat, Madhya Pradesh and Maharashtra,

but the rainy season is likely to continue in Karnataka, Tamil Nadu and Andhra Pradesh because on one hand the returning southwest monsoon can show some of its effect, on the other hand the northeast monsoon will also arrive there.

The new marketing season for crushing sugarcane and production of sugar has formally started from October 1, 2024, but it will take some time for the mills to become dynamic.

The government has issued a free sale quota of 25.50 lakh tonnes of sugar for sale in the domestic division in the festive month of October, which is likely to create a balance between its demand and supply to a large extent.

The price of sugar remains stable within a certain range with limited fluctuations and the government is also keeping a close watch on the market.

The government will not hesitate to increase the free sale quota of sugar in case of a sudden sharp rise in prices - the millers know this. There is no huge festive demand as buyers are not concerned about the availability of sugar stocks.

In Maharashtra and Uttar Pradesh, sugarcane crushing usually starts only after October 15, while in Karnataka and Tamil Nadu, there has been a practice of giving some relaxation to sugar mills after the special session in July-August.

In states like Bihar, Madhya Pradesh, Punjab, Haryana, Jharkhand, Andhra Pradesh and Gujarat, sugar production starts after a short gap.

The industry has a good surplus stock of sugar, so the government is able to take concrete steps to control the rise in its market price.

There is already a ban on commercial export of sugar and it is not likely to be lifted in the near future. The sugar market will remain within the normal range of fluctuations.