Weekly Review- Sugar

14-Sep-2024 05:55 PM

Limited fluctuations in sugar prices amid normal trading

New Delhi. The Union Food Ministry has fixed a free sale quota of 23.50 lakh tonnes of sugar for September 2024, which is 1.50 lakh tonnes more than the August quota of 22 lakh tonnes but 50 thousand tonnes less than the July quota of 24 lakh tonnes. Although the festive season has already started, due to which sugar prices were expected to rise, but it seems that there is no strong demand yet. As a result, limited fluctuations were recorded in sugar prices amid normal trading during the week of September 7 to 13.

Mill Delivery Price

During the week under review, the mill delivery price of sugar improved by Rs 5 in eastern Uttar Pradesh, while a decline of Rs 75 in western Uttar Pradesh, Rs 30 in Punjab and Rs 20-20 per quintal was recorded in Bihar and Madhya Pradesh. Similarly, the mill delivery price of sugar in Gujarat softened by 20 to 50 rupees per quintal.

Spot Price

The spot price of sugar in Delhi fell by 50 rupees to 4030/4130 rupees per quintal, but in Indore it remained stable at the previous level of 3910/4010 rupees per quintal. On the other hand, its price in Raipur, Chhattisgarh increased by 40 rupees to 3970/4050 rupees per quintal. The demand of crude processors remained somewhat strong there.

Mumbai

The price of sugar in Mumbai (Vashi) softened by 20 rupees to 3720/3920 rupees per quintal and the Naka Port Delivery Price also fell by 20 rupees to 3670/3870 rupees per quintal. There was a slight improvement of 5 rupees in the tender price of sugar in Maharashtra, while in Karnataka it decreased by 20 rupees. The spot price of sugar remained stable in Kolkata.

Ethanol production

The government has allowed sugar mills to use sugarcane without control for ethanol production in the coming season, which may reduce sugar production to some extent. The new marketing season for crushing sugarcane and production of sugar will formally begin from next month.