Weekly Review-Sugar

27-Jul-2024 03:45 PM

Sugar prices fluctuate due to limited demand from stockists

New Delhi. Although the festive season is starting from next month, dealers-stockists did not show much interest in buying sugar during the week of 20-26 July. On the other hand, the selling pressure increased due to the presence of a good stock of sugar of the free sale quota of July with the mills in Maharashtra and Gujarat. Sugar consumption is being affected due to heavy rains and floods in many areas. Some strength was seen in the spot market. The free sale quota of sugar for the month of August is going to be declared soon.

Mill Delivery Price

During the week under review, the mill delivery price of sugar fell by Rs 40 in eastern Uttar Pradesh and Rs 80 per quintal in Bihar, while it remained stable at the previous level in Madhya Pradesh. But this price has increased by Rs 10 in Punjab and Rs 25 per quintal in western Uttar Pradesh. In Gujarat, a decline of Rs 30-40 was recorded in the prices of different grades of sugar.

Spot price

The spot market price of sugar remained stable at Rs 3900/4000 per quintal in Delhi, up by Rs 30 and Rs 3900/4000 per quintal in Indore, improving by Rs 20. On the other hand, the price of sugar in Mumbai (Vashi) market also remained at the old level of Rs 3680/3880 per quintal and there was no change in the Naka port delivery price at Rs 3630/3850 per quintal. But the tender price of sugar in Maharashtra fell sharply by Rs 100-110 per quintal, while the tender price in Karnataka remained high by Rs 25 to 40.

Production

The new production season of sugar is two months away from starting, but the industry has a huge stock of it. To keep the prices under control during the festive months, the government may increase the free sale quota of sugar. The ban on sugar exports is likely to remain in force till at least October 2024. There has been some increase in the area of ​​​​cane.