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India Sugar: Falls in Delhi as demand tepid, steady in other markets

Monday, Feb 11

 

By Preeti Bhagat

 

NEW DELHI – Price of medium-grade sugar fell by 5-10 rupees in the wholesale market of Delhi today as buyers stayed away from placing orders, while production is also on the higher side, traders said.

 

Higher sale quota for mills in February and subdued exports due to unviable rates abroad are also weighing on the sugar market.

 

Meanwhile, sugar prices were steady in markets such as Muzaffarnagar, Kolhapur, and Mumbai due to demand-supply parity.

 

"Since there is no confirmation yet on any probable increase in the minimum selling price, the market is silent and in a standstill," said an official with Muzaffarnagar-based Indian Potash.

 

However, only diversion of cane to ethanol can now save sugar mills from depressed prices of the sweetener, the official said.

 

Mills are awaiting announcement of additional soft loans by the Centre under an incentive scheme to boost ethanol production.

 

Under the scheme last year, the government had announced a soft loan of 44 bln rupees and provided an interest subvention of 13.32 bln rupees to mills over a five-year period, including a moratorium of one year.

 

At 1447 IST, the front-month March raw sugar contract on the Intercontinental Exchange was at 12.68 cents a pound, down 0.2% from the previous close. The contract also hit a one-week low of 12.62 cents a pound today.

 

Following are today's prices for medium-grade sugar, in rupees per 100 kg, in key wholesale markets, and the change from the previous close:

 

MARKET

PRICE

CHANGE

Delhi

3,230

   (-)10

Muzaffarnagar

3,300

  0

Mumbai

3,340

   0

Kolhapur

3,280

0

 

End

 

Edited by Subham Mitra

 

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This copy was first published on the Cogencis WorkStation

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