Weekly Review-Sugar

15-Jun-2024 07:23 PM

Sugar prices soften in northern states despite severe heat
New Delhi. Despite the free sale quota for June being 1.50 lakh tonnes less than that of May and the severe heat continuing in the northern states, the ex-factory price of sugar declined during the week of June 8 to 14. Industrial demand for sugar remains strong and its domestic use has also not decreased, but still the millers are being forced to sell their produce by reducing the price. The process of sugar production has ended and its commercial export has been banned for the last one year. Sugar production has been more than domestic demand and consumption, due to which the industry has a huge stock of it left. This is increasing pressure on prices.
Ex-factory price
During the week under review, although the ex-factory price of sugar improved a bit in western Uttar Pradesh and Madhya Pradesh, it remained soft by 10-20 rupees per quintal in eastern Uttar Pradesh, Punjab and Bihar. In Gujarat, the price of sugar fell drastically by up to 75 rupees per quintal. There the demand remained weak while more withdrawals were made by the mills.
Spot market price
The spot market price of sugar improved by Rs 20 to Rs 4200/4220 per quintal in Delhi but remained stable at Rs 3950/4050 per quintal in Indore. Sugar prices in Raipur market of Chhattisgarh softened by Rs 25-50 to Rs 3970/4050 per quintal.
Mumbai
Sugar prices remained stable at Rs 3730/3930 per quintal in Mumbai (Vashi) market and no change was seen in the Nakaport delivery price from the previous level of Rs 3680/3880 per quintal.
Maharashtra
The tender price of sugar in Maharashtra remained stable for S grade and M grade but improved by Rs 20-30 for SS grade and L grade. In Karnataka, the tender price of sugar declined by Rs 5 to Rs 50 per quintal.