Sugar prices rise on aggressive buying

SUGAR: Sugar prices remained in keen demand for the second straight week at the wholesale sugar market in the national capital on aggressive buying by stockist and bulk consumers on the back of government's approval of raising ethanol prices by 25 percent, registering a gain of up to Rs 75 per quintal.

Marketmen said frantic buying by stockist and bulk consumers such as soft-drink and ice-cream makers, triggered by thin supplies from mills largely helped sugar prices upward for the second consecutive week.

The government last week 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.

Later, during the midweek prices met with resistance on commencing of the fresh supplies from mills in pressure of record production, but still settled the week in positive territory.

The country's sugar production is estimated to have touched a record 32 million tonne in the 2017-18 season (October-September), as against 20.3 million tonnes in the previous year.

Coming to price section, sugar ready M-30 and S-30 started the week with a sharp bounce of Rs 200 to Rs 3,600-3,800 and Rs 3,590-3,790 on speculative buying by stockist and bulk consumers.

Later, prices dropped gradually during the week to finish the week at Rs 3,420-3,620 and Rs 3,410-3,610 as compared to last week's close of Rs 3,150-3,350 and Rs 3,140-3,340, still having an upper edge of around Rs 20 per quintal.

Likewise, mill delivery M-30 and S-30 prices began the week on the firm note at Rs 3,310-3,600 and Rs 3,300-3,590, showing a sharp rise of up to Rs 270 each per quintal.

Thereafter, prices came in supply pressure and dropped to finish the week at Rs 3,160-3,380, but still trading in the green zone and showing a rise of about Rs 30 per quintal.

In the mill gate section, the similar trend depicted and the prominent gainer during the week was sugar Dorala, Budhana, Thanabhavan, Dhanora and Mawana, which spurted by Rs 85 each to conclude the week at Rs 3,260, Rs 3,250, Rs 3,240, Rs 3,345 and Rs 3,260 per quintal respectively.

Sugar Kinnoni and Khatuli hardened by Rs 50 each to Rs 3,380 and Rs 3,350, while Modinagar rose by Rs 45 to Rs 3,235 per quintal.

Prices of Asmoli and Malakpur moved up by Rs 40 each to Rs 3,340 and Rs 3,200, while Shamli added Rs 35 at Rs 3,185 per quintal.

Sugar Dhampur and Sakoti also edged up by Rs 30 each to both finish the week at Rs 3,180 each per quintal.