Sugar Stock price: Sugar prices could remain firm despite curbs on exports | India Business News – Times of India

MUMBAI: Sugar prices are more likely to stay agency regardless of New Delhi’s transfer to cap exports as stockpiles are set to fall to the bottom degree in 5 years amid report shipments and strong native demand, business officers advised Reuters.
Increased native costs will maintain margins intact of sugar makers equivalent to Balrampur Chini, Shree Renuka Sugars , Dalmia Bharat Sugar and Dwarikesh Sugar and assist them in making cane funds on time to farmers.
India on Tuesday imposed restrictions on sugar exports for the primary time in six years by capping this season’s shipments at a report 10 million tonnes, up from final yr’s 7.2 million tonnes.
Sugar costs are unlikely to drop due to the curbs as stockpile has depleted attributable to strong home demand and report exports, stated Ashok Jain, president of the Bombay Sugar Retailers Affiliation.
The federal government estimates opening sugar stocks in the beginning of the brand new advertising and marketing yr on Oct. 1 may fall to six.2 million tonnes, which might be the bottom in 5 years.
Sugar costs in Mumbai eased solely 0.3% because the authorities introduced the curbs.
“Mills usually are not below provide strain. This yr consumption has gone up attributable to strong demand from ice-cream and chilly drink makers,” Jain stated.
Consumption of chilly drinks and ice cream, and consequently demand for sugar, rises in India throughout the summer time months that run roughly from March to June.
This yr, ice cream gross sales surged due to the heatwave, in keeping with the Indian Ice Cream Producers Affiliation.
Sugar consumption in 2021/22 advertising and marketing yr ending on Sept. 30 may bounce 5% from to a report 27.8 million tonnes, authorities estimates.
Throughout festivals in December quarter, sugar costs may transfer greater if the nation receives lower-than-normal monsoon rains, stated a dealer primarily based at Kolhapur in Maharashtra.

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