Weekly Review-Sugar

13-Jul-2024 03:04 PM

Sugar prices soften due to weak industrial demand and business

New Delhi. Industrial demand for sugar has weakened due to regular rains and fall in temperature due to increased activity of southwest monsoon across the country. Similarly, due to absence of any important festival or auspicious season, sugar lifting is also decreasing. Food Ministry has fixed free sale quota of 24 lakh tonnes of sugar for the month of July, therefore stockists are also not showing much hurry or panic in buying sugar from mills. As a result, during the week of 6-12 July, softening or stability was recorded in the mill delivery price and spot market price of sugar.

Mill Delivery Price

During the week under review, mill delivery price of sugar declined by Rs 55-55 per quintal in eastern Uttar Pradesh and Madhya Pradesh, Rs 40 in Bihar, Rs 39 in Punjab and Rs 35 per quintal in western Uttar Pradesh. In Gujarat, the price of M grade sugar fell by about Rs 70.

Spot Price

Although the spot price of sugar in Delhi remained stable at Rs 4140/4160 per quintal, it fell by Rs 20 to Rs 3900/4000 per quintal in Indore. It fell to Rs 3700/3900 per quintal with Raipur in Chhattisgarh. There, the Naka Port delivery price of sugar also fell by Rs 10 to Rs 3650/3850 per quintal.

Maharashtra

In Maharashtra, during the week under review, the tender price of different grades of sugar registered a steep fall of Rs 40 to Rs 82 per quintal, while a mixed trend was seen in Karnataka. On the other hand, the spot price of sugar in Kolkata remained soft by Rs 20 to Rs 50 per quintal.

Stock

According to ISMA, if exports are not allowed, at the end of the current marketing season i.e. on 30 September 2024, the industry will have a huge surplus stock of 91 lakh tonnes of sugar which is much more than the normal required stock of 55-60 lakh tonnes.