Lower Quota Speculations Lift Sentiments Of Sugar Market, Prices Gain In West And South

NEW DELHI (Commodities control) The speculations for lower monthly quota for March 2021 has lifted market sentiments. Sugar prices gained Rs. 10 per quintal in western and southern regions. The prices are expected to rise northern region if the government’s releases lower sugar quota. However, sugar remained steady in northern and eastern markets.

According to market sources, the central government may release sugar quota less than 20 lakh MT for next month. It had issued quota of 20 lakh MT in March 2020 and 23.5 lakh MT in March 2019. The government had released quota of 17 lakh MT for February 2021 and 20 lakh MT for February 2020. It is important to mention that Holi will be celebrated in March so demand will be higher.

The speculation for lower quota has improved market sentiments. Buyers have come up for fresh buying. Millers found a chance to increase their selling prices. Sugar prices were quoted higher Rs. 10 per quintal in markets of western and southern regions. The prices were higher in Kolhapur, Hyderabad, Bangaluru and Chennai. However, the prices remained stable in Delhi, Uttar Pradesh and eastern parts of the country. According to traders, the prices will move on quota size. If the government released quota lower than 20 lakh MT. the prices will increase in last days of current month and in first week of March. They said that buyers will rush to market in the anticipation of price rise. Millers will also get opportunity to raise prices. But higher quota than 20 lakh MT will send bearish signal for the market.