Weekly Review - Sugar
10-Aug-2024 02:57 PM
Sugar prices remained soft due to weak demand at high prices
New Delhi. Due to no positive decision taken by the government regarding sugar exports despite strong demand from industry organizations, sufficient stock available with millers and lack of strong demand during the festive season, mill delivery price and spot market price of sugar witnessed softness or stability during the week of 3-9 August.
Mill Delivery Price
Its mill delivery price softened by Rs 20-20 in eastern Uttar Pradesh and Bihar and Rs 10 per quintal in western Uttar Pradesh, but it improved by Rs 10 in Punjab, while it remained stable at the previous level in Madhya Pradesh. In Gujarat, the price of different grades of sugar softened by Rs 40 per quintal.
Spot Price
The spot market price of sugar remained stable at the previous level of Rs. 4260/4280 per quintal in Delhi, while it fell by Rs. 30 to Rs. 3970/4070 per quintal in Indore and by Rs. 15-20 to Rs. 3980/4100 per quintal in Raipur.
Mumbai
Sugar price remained stable at Rs. 3760/3960 per quintal in Mumbai (Vashi) market and there was no change in Naka Port delivery price at Rs. 3710/3910 per quintal.
Tender
But the tender price of sugar for S grade decreased by Rs. 50 each in Maharashtra and Karnataka. In Karnataka, the tender price of SS grade remained soft by Rs. 20, while the tender price of M grade fell sharply by Rs. 70 to Rs. 3750/3780 per quintal.
Kolkata
On the other hand, the spot price of sugar in Kolkata remained at the low level of Rs 4100/4200 per quintal.
Sown area
There is doubt about the sowing area of sugarcane because the Ministry of Agriculture has given the data of increasing area and ISMA has given the data of decreasing area. The next crushing season is going to start from October. It was expected that the festive demand for sugar would start from the first week of August but it could not happen. The free sale quota of sugar for the current month has also been fixed at 22 lakh tonnes, which is less than the quota of 24 lakh tonnes in July and 23.50 tonnes in August 2023.