OfBusiness Sugar Dailies

8^th May’23

Price

• Prices in North India appear to have increased, while they remain stable in Maharashtra.
• Domestic sugar prices are trading higher in the Muzaffarnagar and Delhi markets, while Maharashtra and Kolkata reported a steady market sentiment.
• Sugar rates in some regions of Uttar Pradesh remained unchanged, while rates in certain areas of Madhya Pradesh experienced a slight decrease, ranging from Rs.3600 to Rs.3685.
• Sugar rates in Gujarat regions remained stable, ranging between Rs.3431 to Rs.3601.

Demand and Supply

• Shahabad cooperative sugar mill achieved a sugar production of 7.50 lakh quintals with a 10.75% recovery rate.
• At the beginning of the month, the price of sugar remained steady due to low demand and a lack of pressure to sell.
• Despite the higher monthly quota, spot market prices are being upheld by strong demand.
• Adverse weather conditions have impacted the supply of sugarcane for crushing at the Shamli sugar mill.
• The Shamli sugar mill has processed 96 lakh quintals of sugarcane as well.

News

• This season, the cooperative sugar mills in the state have performed well, achieving a high recovery rate. The mills have already settled 80% of the farmers’ cane dues, which amounts to Rs. 263 crore, and the remaining amount will be cleared shortly.
• Sugar mills in Uttar Pradesh may offer a 3.3% hike in the price of sugarcane to farmers during the upcoming crushing season. The proposed Fair and Remunerative Price is Rs 315 per quintal for a sugar recovery rate of 10.25%.
• The mill is crushing several thousand quintals of cane daily while also prioritizing ethanol production. Additionally, it has successfully reached its goal of generating 5 crore units of electricity.

OFB’s Opinion

• Due to the poor weather, sugarcane supply is affected and there is a risk of halting the crushing operation. The mill has a large quantity of sugarcane available for crushing, but the transportation of cane to the mill is difficult. This may disrupt production and tighten the supply chain.
• It is suggested that the market will continue to trade within a small range. Those looking to buy sugar should do so based on the demand in their local area.