Higher Sugar Output Continues to Dampen Sentiments; Prices Down In South & East

NEW DELHI (Commodities control) Higher sugar production in the country dampened market sentiment further. Sugar prices decreased further in eastern and southern region. The prices remained steady in other regions but bearish trend remained intact. As per latest report, sugar production increased 30 percent to 142.7 lakh MT till mid-January.

M grade sugar reduced Rs. 30 to Rs. 3460-3485 per quintal (GST paid) in Kolkata spot market. Similarly, M grade sugar prices fell down Rs. 10 to Rs. 3100-3120 per quintal (GST Extra) in Hyderabad. S grade sugar also eased down Rs. 10 to Rs. 3070-3100 per quintal. Traders told that ex-mill prices fell down as low as Rs. 2950 per quintal in Maharashtra, Karnataka and other adjoining regions. A senior official of south India based sugar group commented on current scenario that there was no comfortable demand so we need to work hard to get buyers. We also need to reduce prices to keep our products attractive in current bearish market.

Bearish trend prevailed in all over the regions but the prices slipped in eastern and southern region due to higher production in the country and regions specific. Millers were forced to reduce prices to manage their liquidity by their sales. Therefore, spot prices came down in these markets.

As per latest report from sugar industry’s apex body ISMA, Sugar production increased from 108.94 lakh MT to 142.7 lakh MT till mid-january. Sugar production reduced slightly in Uttar Pradesh but increased other regions. The production doubled in Maharashtra.