Sugar prices continue their upward spiral. The prices are up almost Rs. 200 per quintal in major markets from the recent bottom. In the months of February 2024, when the crushing season was at its peak, the sugar prices in Central U.P. (M-Grade) and Western Maharashtra (S-Grade) remained in the range of Rs 3700-3800 per quintal and Rs 3400- 3420 per quintal respectively.
The prices started to pick up in the later half of April. On 17th April, the sugar prices were up by almost Rs 100 per quintal in two sessions amid summer and festival demands. Sugar prices in Central U.P. (M-Grade) were between Rs 3890 to 3900 per quintal, and in Western Maharashtra (S-Grade), the sugar prices were around Rs 3500 to 3550 per quintal.
The trend continues. Prices have risen by Rs 90-100 per quintal, while in Uttar Pradesh they have risen by Rs 40-50 per quintal. Yesterday, i.e. 2nd May, the sugar prices in Maharashtra are quoted between Rs 3625 to 3650 per quintal (S-grade sugar) and for M-grade sugar, the price is between Rs 3700 to 3740 per quintal. In Muzaffarnagar, M-grade sugar ranged between Rs 3920 and Rs 3940 per quintal.
Experts said the prices are up due to speculation of an upward revision in sugar MSP.
The higher domestic sugar prices during the fag-end of the cane crushing operations in the current season were predicted in February 2024 at the Sugar and Ethanol India Conference (SEIC) held in New Delhi.
At a panel discussion titled- ‘Chini: Tezi… yaa Mandi..? (Exploring Dynamics and Trends in Domestic Sugar Trade)’, the panellists comprising of Rahil Shaikh – Director, MIER Commodities, Janeesh Patel – Director, Samarpan Sugar, Aatish Narang – Director, KS Commodities Pvt. Ltd. and Hemant Shah – Co-Founder & Dy. CEO, eBuySugar.com talked about their bullish outlook on sugar prices in India.
Janeesh Patel, Director, Samarpan Sugar had said that he feels that sugar prices have bottomed out, especially in Maharashtra. Aatish Narang, Director, KS Commodities Pvt. Ltd. and Rahil Shaikh, MD, Mier Commodities concurred with the fact that sugar prices are likely to go up.
The most prophetic view came from Hemant Shah – Co-Founder & Dy. CEO, eBuySugar.com. He gave a price range of the expected sugar increase in Maharashtra and Uttar Pradesh. For Maharashtra, he said that the sugar prices might increase to Rs. 37-38 /kg in future. For UP he said that the sugar prices are expected at Rs 39-40/kg.
The SEIC sessions are insightful and incisive and give a definite direction on the dynamics of sugar trade, price, production etc. for India and the International market.
