Weekly Review-Sugar

21-Dec-2024 06:56 PM

No significant fluctuations in sugar prices with limited trading


Sugar Prices Overview

During the week of 14 to 20 December, sugar prices saw stability with limited fluctuations in both mill delivery prices and spot market prices. Despite steady production growth, demand has slowed down due to several factors, including a delay in the wedding season and reduced use of sugar in beverages and ice cream.

Mill Delivery Prices

  • Eastern Uttar Pradesh: An increase of Rs 27 per quintal.
  • Western Uttar Pradesh: A decrease of Rs 5 per quintal.
  • Punjab: A decrease of Rs 40 per quintal.
  • Madhya Pradesh & Bihar: Prices remained stable.
  • Gujarat: A significant decline was recorded.

Spot Prices

  • Delhi: Stable at Rs 3960-4150 per quintal.
  • Indore: Dropped by Rs 15-25 to Rs 3775-3885 per quintal.
  • Raipur: Fell by Rs 5 to Rs 3720-3800 per quintal.
  • Mumbai (Vashi): Stable at Rs 3530-3730 per quintal.
  • Naka Port: Remained stable at Rs 3480-3680 per quintal.

Tender Prices

  • Maharashtra: Prices increased by Rs 30-125, reaching Rs 3325-3655 per quintal.
  • Karnataka: A slight increase in prices.
  • Kolkata: Prices decreased by Rs 20-50 per quintal.

Stock and Export

  • The total domestic sugar production for the 2024-25 marketing season is estimated at 320 lakh tonnes. When combined with a backlog of 79 lakh tonnes, the gross availability will be close to 400 lakh tonnes.
  • Of this, 290 lakh tonnes will be directly consumed, and 40 lakh tonnes will be used in ethanol production.
  • As a result, the sugar industry is expected to have 10-12 lakh tonnes more stock than usual by the end of the marketing season.
  • The government is considering the export of sugar at an appropriate time, but no specific decisions have been made yet.

Conclusion

The sugar market remained relatively stable during this period, with prices adjusting slightly based on regional dynamics. Domestic production is on track, and sufficient stocks are expected to meet demand, with a possible surplus at the end of the season.

Latest News