Sugar prices rise due to brisk demand and thin supply

New Delhi: Sugar prices staged a smart comeback at Rs 150 per quintal at the wholesale market in the national capital on Friday on heavy buying by stockists and consumers amid halt in supplies from mills after government allowed export of two million tonnes of sugar yesterday.

Marketmen said the government's decision to allow mills to export of two million tonnes of sugar until the end of the 2017-18 marketing year, in order to clear surplus stocks and improve cash flow to millers for making payment to sugarcane farmers, led to the sharp upsurge in sweetener prices.

In addition, the government had also allowed export of white sugar till September 2018 under the Duty Free Import Authorisation (DFIA) scheme, under which exporters are allowed to import sugar at zero duty within three years, too gave upward push to the faltered prices, they quoted.

Brisk buying by stockist and bulk consumers such as soft-drink and ice-cream makers to meet ongoing summer demand also bolstered the up trend in sugar prices, they added. Sugar ready M-30 and S-30 prices revealed a sharp jump of Rs 150 each at Rs 3,3,00-3,390 and Rs 3,290-3,380 per quintal.

Mill delivery M-30 and S-30 prices also spurted by Rs 55 each to finish the day at Rs 3,000-3,170 and Rs 2,990-3,160 per quintal. In mill gate section, sugar Dorala, Asmoli, Budhana, Thanabhavan, Sakoti and Malakpur all hardened by Rs 90 each to finish at Rs 3,070, Rs 3,130, Rs 3,070, Rs 3,060, Rs 3,040 and Rs 3,050 per quintal respectively.

Sugar Mawana and Modinagar gained by Rs 80 each to Rs 3,060 and Rs 3,050 per quintal. Following are today's quotations (in Rs per quintal) Sugar retail markets - Rs 33.00-36.00 per kg. Sugar ready: M-30 Rs 3,300-3,390, S-30 Rs 3,290-3,380. Mill delivery: M-30 Rs 3,000-3,170, S-30 Rs 2,990-3,160. Sugar millgate (including duty): Mawana Rs 3,060, Kinnoni Rs 3,170, Asmoli Rs 3,130, Dorala Rs 3,070, Budhana Rs 3,070, Thanabhavan Rs 3,060, Dhanora Rs 3,180, Simbholi Rs 3,120, Khatuli Rs 3,160, Dhampur Rs 3,030, Sakoti 3,040, Modinagar 3,050, Shamli 3,040, Malakpur 3,050.