Quiet conditions have been prevailing in the entire with poor demand amid adequate stocks & festive season sparkling around. Prices of sugar have continued their downtrend over a week with prices sliding down to Rs.50-80/Qtl following poor demand from stockists and bulk consumers. In fact, the ex-mill prices in Maharashtra are on a verge to touch the MSP too.
Market men said, apart from sufficient stocks position; buying support from traders, stockists and bulk consumers has kept the sweetener prices unmoved. The weak trends in the global market have also negatively impacted sentiments here, they added.
The industry is hopeful that the MSP would be increased & the Govt. would take immediate rightful steps in ensuring that the mills take a step ahead towards the export of minimum 50-60LMT to ensure that the market would start floating smoothly.
Sugar millers around the nation have found themselves in difficulty with prices continuing to fall. With just a few days for the upcoming season to begin, cane payments have also become difficult for millers with less money in hand and are expecting that the Govt. would increase the subsidy for sugar cane & add some benefits as a logistics subsidy which would result in movement of surplus sugar in the form off export which at the moment is the need of the hour and would also ensure that the sugar mills don’t face storage problems in the upcoming season.
If the same stagnant conditions prevail, the difficulties in selling the quota for the month of September would increase more disparity in the market surrounded by weak prices, poor demand unmoved market and unfulfilled MIEQ quota.
