Weekly Review-Sugar
07-Dec-2024 07:22 PM
Sugar prices continue to fall due to weak demand
Weekly Review: Sugar Market (30 November - 6 December)
Overview: Sugar prices have been on a decline due to reduced demand following the festive season. Despite this, supply remains steady, putting downward pressure on prices. The government has issued a free sale quota of 22 lakh tonnes for December, which is expected to cover domestic requirements, even considering the ongoing Lagnasara season. Industrial demand has also weakened, contributing to a rise in the use of jaggery.
Mill Delivery Price Changes:
- Eastern Uttar Pradesh: Down by Rs 10 per quintal.
- Punjab: Down by Rs 60 per quintal.
- Madhya Pradesh: Down by Rs 35 per quintal.
- Bihar: Down by Rs 42 per quintal.
- Western Uttar Pradesh: Up by Rs 25 per quintal, reaching Rs 3645/3940 per quintal.
- Gujarat: Prices remained stable or softened slightly.
Spot Prices:
- Delhi: Increased by Rs 10, now Rs 4000/4150 per quintal.
- Indore: Decreased by Rs 20, now Rs 3800/3900 per quintal.
- Raipur: Fell by Rs 15-20, now Rs 3760/3850 per quintal.
- Mumbai (Vashi): Fell by Rs 50, now Rs 3550/3750 per quintal.
- Naka Port Delivery in Mumbai: Fell by Rs 50, now Rs 3500/3700 per quintal.
- Kolhapur: Prices dropped below Rs 3400 per quintal, adding pressure on millers.
Tender Prices:
- Maharashtra: Declined by Rs 70 per quintal, reflecting weak demand.
- Karnataka: Softened between Rs 30 and Rs 55 per quintal, indicating a weaker market.
Production Insights: Sugarcane crushing and sugar production have been increasing across key producing states. While there are concerns about a potential reduction in sugarcane production, no significant psychological impact has been seen on the market yet. There is, however, a possibility of a slight reduction in sugar output.
Outlook: Sugar prices are expected to remain stable within a certain range in the near future. Any potential increase in the ex-factory minimum selling price by the government could lead to a price improvement.