OfBusiness Sugar Dailies | 7th July 2023

Price

• The rate in areas of Punjab is down by Rs.10/quintal.
• The rate in areas of Haryana remained stable.
• The rate in areas of Tamil Nadu remained stable ranging between Rs.3615-3750/quintal.
• The rate in areas of Gujarat remained stable ranging between Rs.3511-3731/quintal.
• In Madhya Pradesh, the price reported with slightly higher than the previous day ranging between Rs.3680-3750/quintal.
• The rate in areas of Karnataka experienced somewhere slight up & slight down in areas.
• The rate in areas of eastern, western, and central zones of Uttar Pradesh remained stable.
• The current price range in these regions is between Rs.3570-3725/quintal.
• The prices in Mumbai, Kolkata, and Raipur remained stable.
• In Kolkata, the rate ranged between Rs.3870-4070/quintal, while in Raipur, it ranged between Rs.3860-3930/quintal.

Demand and Supply

• In Maharashtra, the state is expected to produce 131.0 LMT of sugar, including diversion for ethanol production.
• With 17.4 LMT diversion for ethanol production, net sugar production in Maharashtra is expected to be 113.6 LMT.
• Sugarcane acreage in Maharashtra is expected to be 14.2 lakh hectares in the 2023-24 season, marginally lower than 14.5 lakh hectares in the current season.

News

• In Patna, the Minister of Cooperative has asked the officials to study the Maharashtra model in which the sugarcane-based industry has flourished.
• As instructed, the officials have to visit the villages in Maharashtra and find out which type of sugarcane variety they are growing that contains more juice so that they can follow them and set up small businesses based on the sugarcane industry. This will help in generating employment in the state as well.

OFB’s Opinion

• It is expected that the ongoing excessive dryness in Thailand, combined with the potential impact of the El Nino weather system, will likely lead to a reduction in sugar production and support higher prices.
• The current rainfall levels in Thailand are 28% below last year, and the situation may worsen with the onset of El Nino in the coming years. However, the positive Indian Ocean Dipole (IOD) is anticipated to partially mitigate the effects of El Nino.