Sugar prices surge to all-time high at Rs4,250/quintal
January 5, 2010
Sugar prices on Tuesday rose to Rs4,250 per quintal at the wholesale market on increased buying for the current festival and marriage season amid widening demand-supply gap, reports PTI.
The sweetener, which is already trading double at Rs41 per kg in the retail market over the last one year, is likely to scale more heights as demand for the commodity rose sharply during the last fortnight among bakers and hoteliers for major events like Christmas and New Year, market analysts said.
They said that the demand for the ongoing marriage season and approaching festival of 'Makar Sakranti' might further boost the buying activity in the face of tight supply.
As per the consumer affairs ministry, sugar prices have gone up to Rs 41 per kg in the local market due to a demand-supply gap.
Traders at the Delhi wholesale market said the sweetener might become more costlier as it has risen to Rs4,150-Rs4,250 per quintal in bulk trading against Rs3,590-Rs3,700 per quintal on 19th December.
They said there is restricted supply from mills on account of a fall in production, while bulk users like soft drink manufacturers and retailers have placed more orders.
Sugar medium and small grade prices jumped further by Rs100 each to Rs4,150-Rs4,250 and Rs4,140-Rs4,240 a quintal respectively. It had gained Rs200 in the previous session.
Similarly, the sugar mill-gate prices, at which the companies sell from factories without duty, also rose in the range of Rs100 to Rs70 per quintal.
The sugar from Kinoni and Mawana mills rose by Rs80 and Rs70 to Rs4,000 and Rs3,970 per quintal respectively. Dorala mills rate rose by Rs100 to Rs3,980 per quintal.
A senior official with a leading sugar firm said that the rise in domestic price is in sync with global prices, which touched $718 (Rs33,229) a tonne in London.
The continued restriction imposed by the Uttar Pradesh government on the movement of imported raw sugar also has a bearing on the recent spurt in sugar prices, he added.
Domestic sugar companies, which had contracted to import over five million tonnes of raw sugar till 15th December have gone slow on further contracts, even though the country needs another two million tonne to meet the demand-supply gap.
Sugar production from domestically-grown sugarcane is pegged at 16 million tonnes, while annual demand is 23 million tonnes. The gap is being met through imports.
Mill delivery medium and second grade followed suit and edged up by the same margin at Rs4,050-Rs4,150 and Rs4,040-Rs4,140 per quintal.
Following are today's rates in Rs per quintal: Sugar ready M-30 Rs4,150-Rs4,250 and S-30 Rs4,140-Rs4,240; Mill delivery M-30 Rs4,050-Rs4,150 and S-30 Rs4,040-Rs4,140.