Indian sugar mills association

Export move perks up demand fo

Date:	24 Nov 2011

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News ID:	721

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Chennai, Nov. 23: Sugar prices increased across the country following the Empowered Group of Ministers` decision to allow exports of 10 lakh tonnes of sugar in the current season that began in October.

The mood turned bullish after the announcement, though the industry feels the Centre can allocate more for exports.

In central Uttar Pradesh, price of sugar produced last season increased to Rs 3,100 a quintal from Rs 3,050 on Tuesday. Sugar produced this season was quoted at Rs 3,200 against Rs 3,150.

In eastern and western Uttar Pradesh, sugar from the new season ruled at Rs 3,250 and the one from the old season was quoted at Rs 3,150.

“With the Centre allowing exports, mills in Maharashtra will be looking to export more. They produce sugar with an eye on exports and they also enjoy freight advantage,” said an Uttar Pradesh sugar industry source.

This, however, buoyed sugar in States such as Uttar Pradesh since buyers from eastern India, especially from Kolkata, hunted for sugar there.

“Kolkata buyers were active in Uttar Pradesh. Till now, they had bought from Maharashtra and Karnataka,” the source said.

Apart from Kolkata buying, local demand led to a firm trend in Uttar Pradesh prices.

In Maharashtra, the export decision led to rush from bulk traders and stockists. Mills, too, raised their auction price.

S-30 grade sugar increased to Rs 3,151-3,231 against Rs 3,050-3,100 on Tuesday, while M-30 grade sugar was up at Rs 3,202-3,361 against Rs 3,156-3,261.

The Centre`s decision to allow sugar exports had a negative effect on the global market with white sugar prices falling to a six-month low of $610.80 a tonne in London. Raw sugar ruled at 23.33 cents a pound.

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