Temporary rollercoaster in sugar prices due to MSP news

17-Jun-2024 12:12 PM

New Delhi. Sugar organizations have been continuously demanding from the government to increase the minimum support price of sugar since last week, due to which there was turmoil in the sugar market after the last fortnight.

The above turmoil seemed to fade in the weekend in front of the weak demand in the market. For the current month, the government had issued a free sale quota of 25.50 lakh tonnes of sugar for sale in the open market, which was 1.50 lakh tonnes less than last month.

In view of the increase in industrial consumption due to high temperature, mills tried to increase the prices of sugar in the first week, due to which the sugar market in Uttar Pradesh reached Rs 3920-3950 (normal sugar) per quintal.

Due to high heat, except for industrial demand, other consumption was seen to be low, due to which the business remained sluggish.

The pressure of sugar sales increased on the millers and the market fell by Rs 50-75 to Rs 3830-3900 per quintal.

After this, the demand for increasing the minimum support price of sugar heated up in the market and the trend of decline in the sugar market stopped.

The National Cooperative Sugar Factory Federation (N.S.C.S.F) has urged the government to increase the minimum support price (MSP) of sugar to Rs 4200 per quintal, which is currently Rs 3100 per quintal. Earlier,

one or two organizations had recommended Rs 4100 per quintal. Due to these news, the sugar prices improved by Rs 20-30 per quintal, but due to lack of counter sale, the rise in the sugar market is not getting support.

The market has stopped after the middle of last week. However, senior experts believe that it is difficult to increase the MSP of sugar at the moment. Recently a new government has been formed.

The concerned ministers have not yet fully taken over the reins of their ministry. According to experts, the government can consider this in the coming days. Looking at the current weather, the possibility of much increase in the sugar market seems less.

More than half of June has passed, due to which there will be pressure on millers to sell their quota. Traders should trade with caution.

An increase in sugar consumption can be seen next month. But the ups and downs will depend on what quota the government releases.