Sugar prices spurt on government measures

Sugar: Firm tendency developed at the wholesale sugar market in the national capital during the week as sugar prices rose by up to Rs 130 per quintal on strong demand from stockists and bulk consumers amid a pause in supplies from mills.

Marketmen said prices commenced on a dull note due to record production as well as depressed demand, but recovered after the government's decision to raise ethanol price for the blending in petrol by 25 percent.

The government Wednesday approved an over 25 percent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol in a bid to cut surplus sugar production and reduce oil imports.

After the decision, a strong demand emerged from stockists and bulk consumers such as soft-drink and ice-cream makers, which caused the upturn in sweetener prices, they added.

A pause in supplies from mills on the hope of a further rise in prices also supported the uptrend, they added.

Before this measure, prices were faltering due to record production of about 32 million tonnes in the 2017-18 season (October-September).

In price section, sugar ready M-30 and S-30 prices bounced by a hefty margin of Rs 130 each to finish the week at Rs 3,400-3,600 and Rs 3,390-3,590 per quintal respectively.

Mill delivery M-30 and S-30 prices also climbed up by Rs 85 each to conclude the week at Rs 3,150-3,330 and Rs 3,140-3,320 per quintal respectively.

In mill gate section, the prominent gainer was sugar Kinnoni which spurted by Rs 85 to end at Rs 3,330, followed by Asmoli, which spurted by Rs 80 to Rs 3,300 while Khatuli hardened by Rs 70 to Rs 3,300 per quintal.

Sugar Shamli hardened by Rs 50 to Rs 3,150, while Mawana, Dhanora, Modinagar and Malakpur gained Rs 40 each to Rs 3,185, Rs 3,260, Rs 3,170 and Rs 3,160 per quintal respectively.

Prices of Dorala and Dhampur went up by Rs 35 each to Rs 3,180 and Rs 3,150. Budhana, Thanabhavan, and Simbholi moved up by Rs 30 each to Rs 3,175, Rs 3,170 and Rs 3,250, Sakoti also marked up by Rs 25 to close the week at Rs 3,150 per quintal.