Weekly Review-Sugar

31-Aug-2024 01:55 PM

Normal fluctuations in the sugar market due to lack of demand during the festive season

New Delhi. The Union Food Ministry has set a quota of 23.50 lakh tonnes of sugar for domestic sale for September, which is 1.50 lakh tonnes more than the August quota but 50 thousand tonnes less than the July quota. Industry and trade analysts are considering this quota for the month of September to be correct because this quota is neither too much nor too less in comparison to the demand and consumption. Meanwhile, due to lack of strong demand during the festive season and it being the last week of the month, no major rise or fall was seen in the mill delivery price and spot market price of sugar during 24-30 August.

Mill Delivery Price

During the week under review, the mill delivery price of sugar increased by Rs 10 in eastern Uttar Pradesh, Rs 40 in western Uttar Pradesh, Rs 10 in Madhya Pradesh and Rs 86 per quintal in Bihar, while it remained soft by Rs 20 in Punjab. A slight decline was also seen in Gujarat.

Spot Price

Sugar prices remained soft or stable in the spot market. In Delhi, it fell by Rs 80 to Rs 4060/4180 per quintal and in Indore, it fell by Rs 20 to Rs 3910/4010 per quintal, while in Raipur, Chhattisgarh, it remained stable at Rs 3970/4050 per quintal.

Mumbai

In Mumbai (Vashi), the price of sugar remained stable at three levels of Rs 3740 to Rs 3940 per quintal depending on the quality and the Naka port delivery price remained stable at Rs 3690/3890 per quintal. But in Maharashtra, a good increase of Rs 35 to Rs 85 per quintal was recorded in the tender price of sugar, while in Karnataka the tender price remained soft by Rs 15-20.

Quota

Good demand for sugar is expected soon, while its freesale quota is also not very huge. Although the government is making every effort to keep the sugar prices under control, the prices often go up during the festive season.