The topic of Session VI was ‘Chini: Tezi… yaa Mandi..? (Exploring Dynamics and Trends in Domestic Sugar Trade)’
The panellists were-
Mr. Rahil Shaikh – Director, MIER Commodities
Mr. Janeesh Patel – Director, Samarpan Sugar
Mr. Aatish Narang – Director, KS Commodities Pvt. Ltd.
Mr. Hemant Shah – Co-Founder & Dy. CEO, eBuySugar.com
The session was moderated by Mr. Prashant Biyani, Vice President (Institutional Equity Research) at Elara Securities.
Mr. Rahil Shaikh – Director, MIER Commodities said that the Government has always listened to the sugar mills. There is a possibility of an increase in the Minimum Price of Sugar (MSP) after national elections are held. He said that there are 3 reasons behind cyclicality- arrears of farmers, Government intervention and weather issues. In next season, the Government has to look into certain things like increasing MSP, so that it supports the industry. There is a need to improve information flow from all stakeholders. He also suggested that traders should write to the Government for support and handholding. He is bullish about the sugar prices in the future.
Mr. Janeesh Patel – Director, Samarpan Sugar said that the recent decline in sugar prices is due to excess availability of sugar in the domestic markets, as millers have to make cane price payment to farmers. He feels that sugar prices have bottomed out especially in Maharashtra. However there could be some downtick in UP prices.
Mr. Aatish Narang – Director, KS Commodities Pvt. Ltd. said that sugar exports are not going to happen. There is stress at the moment. Sugar prices are likely to go up. If FRP is increased for 2024-25 season then definitely there will be pressure.
Mr. Hemant Shah – Co-Founder & Dy. CEO, eBuySugar.com said that it’s difficult to understand sentiment on the eBuySugar.com portal. At this point, when sellers come to sell their sugar, they have to reduce prices to sell their product. There is an excess sugar supply in the market. He said that there is a need for a proper Association to represent the interests of the traders. He feels that sugar prices in Maharashtra may increase to Rs. 37- 38 /kg in future, whereas UP can expect sugar prices at Rs 39-40/kg.
