Weekly Review-Sugar

11-Jan-2025 06:37 PM

Minor fluctuations in sugar prices amid slow business

Weekly Review – Sugar (January 4 to 10, 2025)

Price Trends:

• Mill Delivery Prices:

  • Increased by Rs 25/quintal in western Uttar Pradesh, Rs 30 in Punjab, and Rs 10 in Bihar.
  • Stable in eastern Uttar Pradesh, Madhya Pradesh, and Gujarat.

• Spot Prices:

  • Remained stable in Delhi at Rs 4060/4260 per quintal.
  • Increased by Rs 40 in Indore, Madhya Pradesh to Rs 3870/3970 per quintal.
  • Raised by Rs 100 in Raipur, Chhattisgarh, with prices reaching Rs 3840/3950 per quintal.

• Mumbai Market:

  • Prices stable at Rs 3580/3780 per quintal in the Vashi Market.
  • No change in Naka Port Delivery at Rs 3530/3730 per quintal.
  • Fluctuating tender prices in Maharashtra, ranging from Rs 3410/3510 to Rs 3600/3700 per quintal.
  • Tender price in Karnataka decreased by Rs 60 per quintal.
  • The highest price of sugar was recorded in Kolkata at Rs 4080/4100 per quintal.

Factors Influencing Prices:

• Demand and Consumption: The severe cold in northern India has led to a decrease in sugar consumption, particularly in ice cream and cold drinks manufacturing. This has impacted millers' ability to sell sugar at favorable prices.
• Production: Sugarcane crushing and production are ongoing across producing states. However, the market is not experiencing a significant psychological effect from potential changes in the Minimum Selling Price (MSP), as the government has yet to make a decision on this matter.

Outlook:

• A slight increase in demand is anticipated with the onset of the Lagnasara season in the coming days.
• The free sale quota for January is larger than December’s, which could further influence market trends.