Sugar Dips In Delhi As Millers Reduce Prices, But Bottom Out Expected Soon

NEW DELHI (Commodities control) Sugar prices have seed heavy losses in northern market where millers have reduced their selling prices to attract buyers. Traders and stockists have also reduced prices to clear their stocks. However, the market was hopeful for increase in prices in the time to come as it was going to bottom out after long bearish trend.

Sugar prices fell down by Rs. 60 per quintal in Delhi and Muzaffarnagar. The sweetener lost Rs. 50 per quintal in Kanpur. The prices came down after traders and stockists rushed for selling after price reduction by millers. Uttar Pradesh millers have reduced their selling prices by Rs. 20-30 per quintal to attract buyers. They were facing cash crunch due to poor demand which forced them for price cut. The prices were moving in bearish zone for last 12-15 days. The prices have seed downfall or stable trend during previous trading sessions.

But the trend is expected to take a turn in next week. A trader from Delhi Mr. Sushil Agrawal said that gradual downfall in prices made sugar more attractive for buyers. Consumers and retailers were ‘hand to mouth’ mode where they were buying just for immediate need. But current lower level may encourage them for stocking so their appetite will increase. Millers may not reduce their selling prices further so traders and stockists will not come under pressure. He expected that sugar prices are likely to see upward trend in next week.

Hyderabad based industry expert Mr. Nikhil Agrawal also feels that the prices may bottom out soon so the prices can take a turn around by the end of January. He said that prices may not take strong pull back but gradual uptrend is possible. Demand will pick up and bearish trend will end by this month.