Signs of improvement in domestic market price of sugar after export approval

23-Jan-2025 08:34 PM

The approval of sugar exports by the Indian government has certainly had a significant impact on both domestic and global sugar markets.

As you mentioned, the domestic price has jumped by around 10%, increasing from Rs 3300-3400 per quintal to Rs 3700 per quintal.

This price increase is largely due to the psychological effect of the export announcement, with millers and traders showing more confidence in the market.

Additionally, the global market is showing signs of improvement after a brief dip, partially due to concerns about potential disruptions in Brazil's sugar export capacity.

These factors combined suggest that the sugar market may see further stabilization or even price increases, especially as global demand rises around the Ramadan period.

However, the situation also indicates that millers are holding off on exports for now, preferring to wait for higher prices (above Rs 4000 per quintal) before committing.

This reflects their optimism about better export conditions in the coming months, particularly as the export window remains open until September 2025.

In the meantime, both domestic and international stakeholders seem to be in a "wait-and-see" mode, hoping for favorable conditions to emerge soon, which would benefit the industry both domestically and on the global stage.