Weekly Review-Sugar

28-Dec-2024 07:23 PM

Sugar prices improve due to buying at lower prices


Weekly Review of Sugar (21-27 December 2024)

Sugar prices saw a notable improvement during the week of 21-27 December, driven by an uptick in buying activity at lower price levels. This followed a period of weak demand, which had previously led to softening in both mill delivery prices and spot market prices.

Mill Delivery Price

The mill delivery price of sugar witnessed increases in several regions:

  • Eastern Uttar Pradesh: Rs. 60 per quintal increase.
  • Western Uttar Pradesh: Rs. 35 per quintal increase.
  • Punjab: Rs. 40 per quintal increase.
  • Central Madhya Pradesh: Rs. 50 per quintal increase.
  • Gujarat: Rs. 20 to Rs. 80 per quintal increase.

However, the mill delivery price remained stable in Bihar during the week.

Quota for January 2025

The Union Food Ministry set the free sale quota for January 2025 at 22.50 lakh tonnes, which is 50,000 tonnes higher than the December 2024 quota of 22 lakh tonnes, but 50,000 tonnes lower than the January 2024 quota of 23 lakh tonnes. This quota is seen as balanced in terms of demand and supply.

Spot Market Price

The spot market prices varied across different locations:

  • Delhi: Increased by Rs. 100 to Rs. 4100/4250 per quintal.
  • Indore: Fell by Rs. 5 to Rs. 3770/3870 per quintal.
  • Raipur: Remained stable at Rs. 3750/3850 per quintal.
  • Mumbai (Vashi): Stable at Rs. 3530/3730 per quintal.
  • Mumbai (Naka port delivery): Unchanged at Rs. 3480/3680 per quintal.

Tender Prices

Increased tender prices were recorded:

  • Maharashtra: Tender price rose by Rs. 110-150, reaching Rs. 3295/3655 per quintal.
  • Karnataka: Increased by Rs. 25-70, reaching Rs. 3370/3460 per quintal.
  • Kolkata: Spot sugar price rose by Rs. 50-60, reaching Rs. 3900/4080 per quintal.

Sugar Crushing and Production

Sugarcane crushing is ongoing in key producing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat, and Tamil Nadu, with production continuing at full pace across the country.

In conclusion, sugar prices improved due to strong buying activity at lower price levels, while the sugar industry continues to operate actively across major states.

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