OfBusiness Sugar Dailies | 26th October 2023

Price

• In various regions of UP, including the eastern, western, and central zones, sugar prices saw an increase of Rs. 25-55/quintal.
• Meanwhile, the rates in Tamil Nadu held steady, with values ranging between Rs 3700 and Rs 3875/quintal.
• In Uttarakhand, prices surged by Rs. 50-60/quintal, whereas MP maintained stability with prices ranging from Rs 3875 to Rs 3945/quintal.
• In Karnataka, prices hardly fluctuated, remaining in the range of Rs. 3635 to Rs. 3850/quintal. Similarly, in Gujarat, sugar prices remained consistent, fluctuating between Rs 3701 and RS 3871/quintal.

Demand and Supply

• Maharashtra has reported sugarcane cultivation across approximately 14 lakh hectares, with expectations to process about 1,022 lakh tons in the mills. The government’s estimate indicates that the state is likely to produce 88.58 lakh tons of cane this season, reflecting a significant decrease from last season’s 105.6 lakh tons. It’s projected that around 15 lakh tons of sugar will be redirected for ethanol production.

News

• Recent developments in Uttarakhand saw farmers in the village of Shekhupur convening to express their frustration over the government’s delayed announcement of sugarcane prices. The farmers voiced concerns about rising sugarcane cultivation costs, which haven’t been matched by an increase in sugarcane prices. They called for an upward adjustment of sugarcane prices to Rs. 600/quintal.

OFB’s Opinion

• Despite the beginning of the festive season, it appears that demand is relatively weak. Prices are likely to strengthen in the near term, given the tight market conditions and the delayed commencement of crushing.