Weekly Review-Sugar
28-Sep-2024 08:49 PM
Sugar prices continue to improve due to festive demand
New Delhi. Supported by strong festive demand, the mill delivery price of sugar remained quite high in UP, Punjab, MP and Bihar during the week of 21-27 September.
Gujarat
There was a slight increase in Gujarat while the spot price in Delhi jumped by Rs 150 to Rs 4140/4350 per quintal. During the week under review, the ex-factory price of sugar increased by Rs 60 in eastern Uttar Pradesh, Rs 80 in western Uttar Pradesh, Rs 90 in Punjab, Rs 80 in Madhya Pradesh and Rs 180 per quintal in Bihar. In Gujarat also, the price of M grade increased by Rs 20.
Spot Price
But there was no change in the spot market price of sugar in Indore and Raipur. Similarly, the price of sugar in Mumbai (Vashi) market remained at its previous level and no fluctuation was recorded in Naka Port Delivery Price. The tender price of sugar increased by Rs 10-30 per quintal in Maharashtra and Rs 10 per quintal in Karnataka. On the other hand, the spot price of sugar in Kolkata increased by Rs 70 per quintal.
Quota
Being the last week of the month, there was pressure on the millers to sell the remaining stock of sugar of the free sale quota of September, but due to good demand from stockists and food processing units, the prices remained strong. The free sale quota of 23.50 lakh tonnes of sugar was fixed for September, which was increased by 2 lakh tonnes to 25.50 lakh tonnes for October. The demand and consumption of sugar is expected to increase rapidly in October.
Ex-factory price
The ex-factory price of sugar has increased in UP, MP, Punjab and Bihar. The government is considering increasing its MSP, while the increase in the purchase price of ethanol has become almost certain. On the other hand, sugar production is likely to decrease in Brazil, the major producer and exporter country, due to the heavy damage to the sugarcane crop due to dry and hot weather and incidents of arson, due to which the global market price is increasing. Indian industry is repeatedly requesting the government to allow the export of sugar.