Weekly Review-Sugar
05-Oct-2024 06:34 PM
Sugar prices remained somewhat firm with limited trading
New Delhi. For the month of October, the government has issued a huge free sale quota of 25.50 lakh tonnes of sugar, while due to it being a month-end week, millers were forced to sell the previous stock.
Demand/Supply
The demand for sugar remained limited during the week from 28 September to 4 October among traders/stockists and food processors as well as other consuming industries as there is no possibility of any supply problem. Sugar prices increased by 30 to 60 rupees per quintal. Navratri is on, so the demand for sugar may increase somewhat.
Mill Delivery Price
During the week under review, the mill delivery price of sugar remained higher by 30 rupees in eastern Uttar Pradesh, 20 rupees each in western Uttar Pradesh and Punjab. In Madhya Pradesh, it was stable at Rs 3755/3875 per quintal, but in Bihar it fell by Rs 50 to Rs 3920/3990 per quintal. In Gujarat, an increase of 20 to 80 rupees was recorded in the mill delivery price of sugar.
Spot Price
The spot price of sugar remained stable at Rs 4140/4350 per quintal in Delhi, but improved by Rs 20 to Rs 3970/4070 per quintal in Indore and increased by Rs 50-60 to Rs 3970/4050 per quintal in Raipur. The price of sugar in Mumbai (Vashi) market increased by Rs 30 to Rs 3750/3950 per quintal and Naka Port delivery price also increased by Rs 30 to Rs 3700/3900 per quintal. There was a softness of Rs 20-30 in Kolkata. Tender
The tender price of sugar was seen higher by Rs 65-85 in Maharashtra and Rs 15 per quintal in Karnataka. The increase in prices has provided some relief to the sugar mills.
Production
The new marketing season (2024-25) for crushing sugarcane and production of sugar formally started from October 1. The industry has sufficient stock and hence buyers are not showing any panic or haste. Sugar prices are expected to remain strong till Diwali.