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| AW Sugar Spot Prices Firmed Up on Higher Support Prices | |
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Domestic sugar prices reversed back to up in the physical market on an increase in support prices by top cane producer, Uttar Pradesh, and some demand in southern states from crushers.
Good demand from crushers in Karnataka and Tamil Nadu was the main factor for price rise. Besides, higher prices in UP is also helped the market, traders said.
However, the central government has fixed new state-set prices for cane, aiming for stable sugar supplies. Home Minister Palaniappan Chidambaram said the government had approved a new "fair and remunerative" price of Rs 129.84/quintal of cane and it will be applicable throughout the country.
The new price is higher than the centrally advised price of Rs 107.76/qtl, but lower than the price of Rs 170/qtl fixed by the Uttar Pradesh state. In addition, the government is considering to increase the cap on duty-free refined sugar import by 1-MMt once the current limit is exhausted, to prevent upward spiral of domestic prices triggered by supply concern.
In Mumbai''s Vashi market on Thursday, M-30 ready sugar prices offered up at Rs 3200-3250/qtl while S-30 ready sugar quoted firm at Rs 3110-3160/qtl. Ex-factory rate of M-30 sugar traded strong at Rs 3040-3090/qtl while S-30 traded up at Rs 2950-3000/qtl respectively.
In Kolhapur market, M-30 ready sugar pries were strong at Rs 3155-3160/qtl while S-30 ready sugar quoted firm at Rs 3075-3080/qtl.
In Delhi’s market, Sugar M-30 quoted up at Rs 3210-3250/quintal while sugar S-30 offered firm Rs 3195-3235/quintal including excise duty, respectively. However, Mill delivery M-30 offered at Rs.3130-3200/quintal and S-30 quoted at Rs 3110-3190/quintal excluding excise duty.
In Muzaffarnagar market, M-30 ready sugar pries quoted up at Rs 3320-3325/qtl while S-30 ready sugar also climbed to Rs 3305-3310/qtl. |