Indian sugar mills association

Sugar static in UP; drops in M

Date:	23 Nov 2011

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News ID:	718

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Chennai, Nov. 22: Sugar prices remained unchanged in Uttar Pradesh but dropped in Maharashtra on selling pressure from mills and stockists.

“The delay in taking a decision on exports has depressed the market,” said a sugar industry source.

The Centre may drag its feet on allowing exports as the Opposition increases pressure on surging inflation.

In Uttar Pradesh, sugar produced this season was quoted at Rs 3,150 a quintal, the same as on Monday. The price of old sugar ruled at Rs 3,025.

Crushing in the northern State is yet to gather momentum. It is likely to pick up pace next week.

One of the problems worrying sugar mills in Uttar Pradesh is the higher State Advised Price (SAP) they have to pay to sugarcane growers. This year, the Mayawati Government has fixed the SAP at Rs 2,400 a tonne against Rs 2,050 last year.

The higher SAP is likely to result in an increase of Rs 4 a kg of sugar but mills are unlikely to realise the additional burden they have to shoulder in paying a higher price to growers.

However, any decision on export could help lift prices. The industry is of the view that with production this season that began in October likely to be 265 lakh tonnes and consumption 225 lakh tonnes, there is ample opportunity to export.

On Monday, the International Sugar Organisation Executive Director, Mr Peter Baron, said India could export up to 40 lakh tonnes sugar in view of depleting stocks in the global market.

PTI reports: Meanwhile, in Mumbai`s Vashi wholesale market S-30 grade sugar slumped to Rs 3,050-3,100 from Rs 3,070-3,171.

M-30 grade dropped to Rs 3,156-3,261 from Rs 3,161-3,273.

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