OfBusiness Sugar Dailies | 29th November 2023

Price

• The pricing scenario in Tamil Nadu areas maintained stability within the range of Rs 3775 to Rs 3875/quintal.
• Meanwhile, in the eastern, western, and central zones of Uttar Pradesh, rates held steady, fluctuating between Rs 3830 and Rs 3935/quintal.
• Gujarat witnessed a decrease of Rs. 10/quintal, Karnataka experienced a similar decline.
• Mumbai and Kolkata noted drops of Rs. 20 and Rs. 20-30/quintal, respectively. Conversely, Raipur’s rates remained constant, ranging from Rs 4010 to Rs 4100/quintal.

Demand and Supply

• In the Ahmednagar area, 21 sugar mills, comprising 12 cooperatives and 9 private mills, are now in operation. These mills have processed 15.53 lakh tons of sugarcane, yielding 11.64 lakh quintals of sugar at an average recovery rate of 7.5%.
• It is worth mentioning that Aurangabad exhibits the state’s lowest recovery rate at 6.61%, resulting in a sugar production of 8.27 lakh quintals.

News

• In a notice released on November 28, the Ministry of Food has assigned a monthly sugar quota of 24 LT for December 2023 to 562 mills, marking an increase of 2 LT compared to the allocation in December 2022 (22 LT).
• India has been designated as the Chair of the International Sugar Organisation (ISO) for the year 2024. This declaration was issued at the 63rd council meeting of ISO, which took place at its London headquarters.

OFB’s Opinion

• It looks like sugar prices in major domestic markets are holding steady to slightly weak. This could be attributed to lower demand from soft drink and ice cream manufacturers during December-January, potentially influencing prices. It might be a prudent approach to monitor market conditions before making significant purchases.