Weekly Review-Sugar

22-Jun-2024 08:37 PM

Normal fluctuations in sugar due to monsoon rains and news of recession from abroad

New Delhi. Due to increase in monsoon activity in different parts of the country and especially in South India and Maharashtra, reduction in heat wave and good production in Brazil, pressure on prices in New York and London exchanges, normal fluctuations were seen in mill delivery price and spot market price of sugar in the domestic sector during the week of 15-21 June. Although the free sale quota of June is 1.5 lakh tonnes less than May, but the intensity of demand for sugar has also decreased. There is no possibility of any major rise or fall in sugar prices in future.

Mill Delivery Price

During the week under review, the mill delivery price of sugar increased by Rs 5 each in eastern and western Uttar Pradesh but decreased by Rs 10 in Madhya Pradesh and Rs 20 per quintal in Bihar. In Gujarat also, it softened by Rs 20 to Rs 60 per quintal.

Spot price fell
During the same period, spot market price of sugar remained stable at Rs 4200/4220 per quintal in Delhi and fell by Rs 20 to Rs 3930/4030 per quintal in Indore but increased by Rs 10 to Rs 3980/4060 per quintal in Raipur (Chhattisgarh).
Mumbai
Sugar price in Mumbai (Vashi) market fell by Rs 20 to Rs 3710/3910 per quintal and Naka port delivery price also slipped by Rs 20 to Rs 3600/3860 per quintal.
Maharashtra Tender
Sugar tender price weakened by Rs 20 in Maharashtra and Rs 10-15 in Karnataka. No change was seen in spot market price of sugar in Kolkata.
Monsoon
Sugarcane crop is benefiting from monsoon rains in states like Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Gujarat. The scope of rain has reached Bihar. Now states like Uttar Pradesh, Madhya Pradesh, Punjab, Haryana and Uttarakhand are waiting for the arrival of monsoon. There is hope of good rains this time. Sugar production is increasing in Brazil.