Weekly Review-Sugar
18-Jan-2025 08:52 PM
Sugar prices improve with better offtake
Weekly Review - Sugar (11-17 January 2025)
Sugar Prices Improve Due to Better Offtake
The sugar market showed a positive trend during the week of 11-17 January, driven by factors like the Lagnasara season and reduced supply from mills. As a result, mill delivery prices, spot market prices, and tender prices of sugar saw an increase across various regions in India.
Mill Delivery Prices
Mill delivery prices increased across several states:
- Eastern and Western Uttar Pradesh: Up by ₹25 per quintal
- Punjab: Up by ₹40 per quintal
- Madhya Pradesh: Up by ₹20 per quintal
- Bihar: Up by ₹40 per quintal
- Gujarat: Increased by ₹20 to ₹50 per quintal
Spot Market Prices
Spot market prices also saw upward movement:
- Delhi: Increased by ₹50 to ₹4150-4310 per quintal
- Indore: Increased by ₹70 to ₹3940-4040 per quintal
- Raipur: Up by ₹5-10 to ₹3860-3950 per quintal
Mumbai
- Vashi Market: Increased by ₹20 to ₹3600-3800 per quintal
- Naka Port Delivery: Increased by ₹20
- Tender Prices: Jumped by ₹20 to ₹90 per quintal in Maharashtra and ₹60 to ₹180 per quintal in Karnataka.
Kolkata
- Spot prices increased by ₹20-60, reaching ₹4000-4120 per quintal.
Production Outlook
There are concerns regarding a potential decline in domestic sugar production. The Food Minister recently suggested that the issue of allowing sugar exports might soon be considered, with a possible decision on increasing the ex-factory minimum selling price (MSP) of sugar.
The low sugarcane yield is expected to affect sugar production this season. Additionally, the rise in ethanol production will likely double sugar consumption during the 2024-25 marketing season. Increased production costs are also adding to the financial strain on millers.
Conclusion
Sugar prices have strengthened due to improved demand and reduced supply from mills. However, concerns over declining production and rising costs are expected to shape the market in the coming months.