Weekly Review- Sugar

08-Jun-2024 08:16 PM

Sugar prices remained soft due to selling pressure
New Delhi. The Food Ministry has fixed the domestic free sale quota of 25.50 lakh tonnes of sugar for the month of June, which is 1.5 lakh tonnes less than the record quantity of 27 lakh tonnes in May. Monsoon has arrived in the country since May 30 and now the focus of the millers is on selling their stock.

Production / Quota

During the 2023-24 season, about 320 lakh tonnes of sugar is estimated to be produced at the national level, while with the previous outstanding stock of 57 lakh tonnes, its total availability is likely to reach 377 lakh tonnes. Due to the ban on export, the millers are being forced to sell their sugar in the domestic division only. The Lok Sabha elections are over and the temperature has also come down a bit, due to which the demand for sugar has become normal.

Ex-mill price

During the week 1 to 7 June 2024, the ex-mill price of sugar fell by Rs 40 per quintal in western Uttar Pradesh and Bihar, Rs 15 in eastern Uttar Pradesh and Rs 10 per quintal in Madhya Pradesh. A sharp decline of Rs 60-70 per quintal was recorded in Gujarat. Prices remained stable in Punjab. The demand for sugar was observed to be weak.

Spot Price

The spot market price of sugar fell by Rs 20 to Rs 4200/4220 per quintal in Delhi while it remained stable at Rs 3950/4050 in Indore. The spot price of sugar in Raipur market of Chhattisgarh also remained at the previous level of Rs 4000/4100 per quintal.

Mumbai
 

Sugar price in Mumbai (Vashi) market remained stable at Rs. 3730/3930 per quintal and Naka port delivery price remained stable at Rs. 3680/3880 per quintal but tender price of sugar in Maharashtra fell by 15 to 45 rupees per quintal.
 

Tender
 

Meanwhile, tender price of sugar in Karnataka jumped by 90 rupees and reached a high of Rs. 3625/3750 per quintal. Industrial demand for sugar remains normal but excess demand in the market has ended.