Weekly Review-Sugar

14-Dec-2024 07:38 PM

Sugar prices continue to soften due to good availability and weak demand

Weekly Sugar Review (7-13 December 2024)

Sugar prices continued to soften due to good supply and weak demand, marking a consistent decline since the end of the festive season.

Key Highlights:

• Supply & Demand: The domestic sugar market is well-supplied, with weak demand contributing to the price decline.
• Quota: The government has issued a free sale quota of 22 lakh tonnes for December, but dealers, stockists, and other consumers are not rushing to buy.

Price Movements:

• Mill Delivery Prices:

  • In eastern Uttar Pradesh, prices increased by Rs 20, reaching Rs 388 per quintal.
  • However, prices dropped in western Uttar Pradesh (by Rs 35), Punjab (by Rs 41), Madhya Pradesh (by Rs 40), and Bihar (by Rs 10).
  • In Gujarat, there was a Rs 10 decline, while prices in Madhya Pradesh fell to Rs 3460-3580 per quintal.

• Spot Market Prices:

  • Delhi: Stable at Rs 3960-4150 per quintal.
  • Indore: Stable at Rs 3800-3900 per quintal.
  • Raipur (Chhattisgarh): Prices rose by Rs 20 to Rs 3780-3850 per quintal.
  • Mumbai (Vasi): Prices fell by Rs 20 to Rs 3530-3730 per quintal, while the Naka Port Delivery Price also dropped by Rs 20 to Rs 3480-3680 per quintal.

• Tender Prices:

  • Maharashtra: Tender prices dropped by Rs 10-20, ranging from Rs 3325 to Rs 3650 per quintal.
  • Karnataka: Tender prices fell by Rs 30.

Sugarcane Crushing:

• Crushing continues across major sugar-producing states, but sugar production is lagging behind last year.
• Domestic demand remains weak, and sugar exports have been suspended for some time, contributing to a price downtrend.

Outlook:

• With the proposal to increase the ethanol price still pending, sugar mills are facing financial challenges. The reduced income from sugar sales is making it difficult for mills to pay dues to sugarcane farmers.