Sugar Weekly Review: Prices Ease After Festive Demand Fulfillment
09-Nov-2024 05:58 PM
New Delhi – After the completion of festive demand during Diwali and other festivals, sugar prices saw a slight decline during the week from 2nd to 8th November. The domestic sale quota for sugar for November 2024 has been set at 22 lakh tons, which is 3.5 lakh tons less than October’s quota of 25.5 lakh tons. However, the new quota is considered sufficient to meet the current month's demand and consumption.
Mill Deliveries
During the review week, the mill delivery prices of sugar remained soft across various regions. In Eastern Uttar Pradesh, the price was Rs.45 per quintal lower, while in Western Uttar Pradesh, it dropped by Rs.10 per quintal. Similarly, in Punjab, the price fell by Rs.40 per quintal, and in Madhya Pradesh, it saw a drop of Rs.10 per quintal. However, in Bihar, the price increased by Rs.30, reaching Rs.3901/3910 per quintal. In Gujarat, there was a reduction in ex-mill prices ranging from Rs.10 to Rs.35 per quintal.
Spot Market
Between 2nd and 8th November, the spot prices of sugar remained stable in various markets. In Delhi, the price was steady at Rs.4150/4270 per quintal, while in Indore, it held at Rs.3951/4051 per quintal. In Raipur (Chhattisgarh), prices declined by Rs.20-25, reaching Rs.3930/4000 per quintal.
In the Mumbai (Vashi) market, sugar prices fell by Rs.20, settling at Rs.3680/3880 per quintal, and the Naka port delivery price also dropped by Rs.20, reaching Rs.3630/3830 per quintal. In Maharashtra, the tender prices of sugar showed fluctuations, but the variation was limited to Rs.5-15 per quintal. However, in Karnataka, sugar tender prices saw a substantial rise of Rs.50-95 per quintal. Meanwhile, in Kolkata, the spot prices remained stable.
Sugarcane Crushing and Production
The new marketing season for sugarcane crushing and sugar production officially began on 1st October. However, in Maharashtra, crushing will only start on 15th November as per the given permission. The availability and supply of sugar in the domestic market are currently in a comfortable position.
With the wedding season approaching, sugar demand is likely to rise. Additionally, the arrival of new jaggery stocks might ease some pressure off sugar consumption. Considering these factors, it is not expected that sugar prices will experience significant volatility in the near future.