ChiniMandi, Mumbai: Friday 28th May 2021
Production & Export Overview:
According to the latest reports by Indian Sugar Mills Association (ISMA) the country till May 15,2021 has produced 303.60 LMT of sugar and about 57 lac tons of contracts for export of sugar have already been entered into which translates to 95% of the total MAEQ quantity for sugar season 2020-21. Maharashtra ended its crushing season with a sugar output of 106.3LMT with an average recovery of 10.50%.
The domestic market has been witnessing “no demand” with the surge in Covid-19 cases and statewise imposed lockdowns in different parts of the country. The Central Government however has been reluctant to call for a nationwide lockdown on apprehension of backlash on the economic growth. Sugar millers have already been facing the heat with selling pressure, stocks piled, unlifted sold stocks,growing interests etc, logistics has also taken a backseat hence not being able to liquidate funds. Market-men expect to witness some demand picking after state lockdowns are eased in the first week of June 2021. The industry is also eagerly awaiting some decision on the hike of Minimum Selling Price which is currently ₹3100/Quintal to improve the situation of stakeholders.
Update by CARE Ratings:
Concerns of heavy surplus stocks have been looming in the domestic market which is hindering any growth in domestic prices in India and will continue to be a reason for the market not witnessing any sharp improvement in prices in the next few months.
State wise Prices as on May, 28 2021 :
– Maharashtra:S/30 Sugar rates from millers are ₹3110 to ₹3140/Qntl. whereas M/30 ₹3220.
In the resale market S/30 is trading at ₹3025 to ₹3050 whereas M/30 is trading at ₹3050 to ₹3120.
– Karnataka : S/30 Sugar rates from millers are ₹3160 whereas M/30 is at ₹3210.
– Uttar Pradesh: The rates for M/30 are ₹3300 to 3370
– Gujarat: According to sources, most of the mills have given their quota for third party exports therefore not much stock is available in the market until the quota for the next month is announced. The rates for new S/30 at ₹3121 to 3141 whereas new M/30 ₹3181 to 3201.
– Tamil Nadu: S/30 Sugar rates are ₹3175 to 3300 whereas M/30 rates are at ₹3250 to 3350
(All the above rates are excluding GST)
Closing Overview :
On Thursday sugar prices closed moderately higher on strength in the Brazilian real which rose more than 1.20% against the US dollar.
London white sugar closed at $457.50/ton with an appreciation of $7.50 whereas New York closed 0.34 points higher to close at 17.12/lb in comparison to the previous day.
Market Today :
At the time of writing this update sugar prices are in the green with prices up more than 1.30%
London White Sugar front month contract is trading at $463.80/tn whereas New York Sugar front month contract is trading at 17.15/lb
Indian export rates:
In the Indian market, white sugar of the season 2020/21 icumsa 100 ready delivery for exports is trading at ₹27700 to 27900 on ex factory basis. Demand for Raw sugar of the season 2020/21 icumsa between 600- 1200 is at ₹27200 to ₹27300 factory basi
Currency, Commodity & Indian Indices:
The rupee traded against the US dollar at 72.487 whereas USD was trading with BRL at 5.2528 Crude futures traded at Rs.4894, Crude WTI traded at $67.35 a barrel. Sensex closed 307.66 points higher at 15435.65 whereas Nifty ended 97.80 points higher at 15,435.65.