Increase in prices after opening of sugar export

24-Jan-2025 10:29 AM

Increase in prices after opening of sugar export
★ After the opening of sugar exports, there has been a noticeable increase in prices, even though exports haven't started yet.
Key points:
★ The market has already seen some activity, with sugar prices in the mandis rising by 2-3 INR per kg after the announcement of imports opening up.
★ The country has sufficient sugar stocks available, so this price surge can be seen as a sentimental increase rather than a fundamental one. There are fewer chances of a significant price hike.
★ Sugar mills are keen on selling at higher prices because Brazil is not currently producing, limiting supply.
★ International sugar prices are down 8% from last month and 24% compared to the same period last year.
★ The market seems to be reacting more to sentiment and expectations rather than actual supply and demand shifts.