The global sugar market has witnessed a notable uptick in prices, with international trading reflecting a bullish trend. Monday’s trading session saw the May NY world sugar #11 (SBK24) closing up by +0.04 (+0.18%), while the May London ICE white sugar #5 (SWK24) surged by +4.60 (+0.74%). These indices soared to 2-week highs, primarily propelled by a surge in gasoline prices, which in turn, boosted ethanol prices.
Meanwhile, domestically, sugar prices in key markets have displayed resilience, maintaining a steady to firm stance. Notably, prices in Uttar Pradesh’s major markets experienced an ascent of Rs 10-15 per quintal, while market sentiment remained solid in Kolhapur. This upward trajectory in prices is further reinforced by the imposition of lower monthly quotas in Uttar Pradesh, lending support to the prevailing market rates.
Providing a glimpse into specific market dynamics, M-grade sugar in Muzaffarnagar was observed trading within the range of Rs 3,785 to Rs 3,820 per quintal on Monday, while S-grade sugar in Kolhapur is anticipated to command prices ranging between Rs 3,430 and Rs 3,470.
Despite these localised fluctuations, the broader trend in sugar prices across Indian markets has been subdued, owing to a combination of factors including a stable crushing season and a surge in sugar production levels, particularly in Maharashtra and Karnataka. The higher-than-anticipated output in these key producing regions has exerted downward pressure on prices, tempering any significant bullish momentum in the market.
While international sugar prices are on an upward trajectory driven by external factors, the domestic market in India remains relatively stable yet supported by strong demand dynamics and localised supply-side interventions.
