The wholesale sugar market was firm in the national capital during the week on heavy buying by stockist and bulk consumers amid thin arrivals from mills after reports that the government may take more supportive steps to prevent declining sugar prices, leading to sharp gains of up to Rs 440 per quintal.
Marketmen said brisk buying by stockist and bulk consumers such as soft-drink and ice-cream makers to meet ongoing summer season demand, sparked by negligible supplies from mills after reports that the government may take some more necessary steps to prevent falling sweetener prices, caused the sharp upsurge in sweetener prices.
According to market reports, The food ministry has moved a draft Cabinet note on creating a sugar buffer stock of 3 million tonne and fixing a minimum ex-mill price to help cash-starved millers clear cane arrears.
This situation has been created due to sharp fall in sugar prices and record production and production has touched an all time high of 31.6 million tonne so far in the 2017-18 season (October-September).
Though, to check the fall in sweetener prices, the government has already doubled sugar import duty to 100 per cent and scrapped export tax and has also asked mills to export 2 million tonnes sugar, under the Duty Free Import Authorisation (DFIA) scheme, under which exporters are allowed to import sugar at zero duty within three years.
In price section, sugar ready M-30 and S-30 prices rallied by Rs 440 each to end the week at Rs 3,200-3,350 and Rs 3,190-3,240 as compared to previous week’s close of Rs 2,760-2,880 and Rs 2,750-2,870 per quintal, respectively.
Likewise, mill delivery M-30 and S-30 prices shot up by Rs 400 each to settle the week at Rs 2,840-3,080 and Rs 2,830-3,030 as compared with last week’s close of Rs 2,550-2,680 and Rs 2,540-2,670 per quintal, respectively.
Among mill gate section, Sugar Kinnoni jumped up the most by Rs 400 to conclude the week at Rs 3,080, followed by Budhana climbed up by Rs 380 to Rs 2,970, while Mawana, Thanabhavan and Dorala spurted by Rs 370 each to Rs 2,960, Rs 2,970 and Rs 2,960 per quintal, respectively.
Sugar Khatuli hardened by Rs 365 to Rs 3,040 and Simbholi by Rs 355 to Rs 3,030 per quintal.
Prices of Asmoli strengthened by Rs 330 to Rs 2,980, Malakpur rose by Rs 325 to Rs 2,910, meanwhile Dhanora, Sakoti and Shamli gained by Rs 320 each to Rs 2,990, Rs 2,890 and Rs 2,900 per quintal, respectively.
Sugar Modinagar moved up by Rs 310 to Rs 2,900 and Dhampur enquired higher by Rs 285 to Rs 2,840 per quintal.