Indian mills gate, wholesale sugar prices continue to decline
Mill-gate sugar prices have fallen by ₹1,500 per quintal from last week’s record highs after government intervention and duty-free import approval, though retail prices remain above ₹60 per kg. Fresh lower-priced stocks are expected to reduce retail prices as anti-hoarding measures improve market supplies.
Mill gate sugar prices have dropped by ₹1,500 a quintal since they peaked to record levels last week, but rates at retail outlets continued to rule above ₹60 a kg on Wednesday. Wholesale sugar prices declined by at least ₹100 in key cities such as Delhi, Kolkata, Mumbai, Hyderabad and Chennai.
“Mill gate prices have dropped to ₹5,050-5,350 a quintal for S-30 grade sugar. Buyers are not willing to offer more than ₹4,500. They are calling the shots now,” said an industry source, who did not wish to be identified.
M-30 grade sugar was quoted at ₹5,200-5,450 a quintal. Resale sugar, which traders or agents previously purchased from factories through tenders, was quoted at ₹5,100-5,250 (against ₹5,500-5,800 on Friday) for S-30 grade sugar. M-30 grade sugar was offered at ₹5,850 in resale.
187 t sold at ₹5,120 a quintal
Sources said Shree Nilkantheswar SSK Limited sold 110 tonnes of S-30 sugar at ₹5,120 a quintal on Wednesday evening. It had offered 187 tonnes.
Another 176.40 tonnes on offer at ₹5,120 failed to attract any buyers. “The real situation will unveil when this sugar is bought,” the source said.
Wholesale prices ranged from ₹5,800 a quintal in Mumbai to ₹6,500 in Chennai. Retail prices ruled between ₹65 a kg in Chennai and ₹61 in Mumbai. However, the all-India average zoomed to a new high of ₹65.05 a kg, up over ₹1 from Tuesday, data from the Price Monitoring Division of the Department of Consumer Affairs showed.
Moves to curb price surge
Traders said retail prices are ruling high since the current stocks with retailers were bought at a higher price. “Once they buy fresh stocks, prices will drop,” said the industry source.
Industry stakeholders said the government’s move to allow duty-free import of 1 million tonnes of raw sugar last week has primarily dragged prices lower. Besides, the government has taken various measures, including cracking down on traders in different States to check hoarding, monitoring physical stocks with mills and cutting the stock limit for bulk buyers (who purchase over 10 tonnes a month) to 15 days of their requirements, to check the price rise.
On Wednesday, global sugar prices, however, edged higher. October raw sugar futures on InterContinental Exchange, New York, rose to 17.57 cents a pound, while spot prices dropped to 17.25 cents. In London, white sugar dropped to $520.20 a tonne.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : The Hindu Businessline
