Indian holiday demand stimulates strong rise in sugar prices

Reuters Mumbai News, according to traders, due to the warmer demand before the holiday, plus the increase in consumer spending at the beginning of the month, the price of Indian sugar rose strongly last Friday.

The price of S-grade sugar on the Kolhapur market in Maharashtra (Mabang) last Friday rose by 1% to a level of 2,700 rupees/100 kilograms (approximately 61.09 yuan), while India The price of sugar futures for August delivery of the Commodity and Derivatives Exchange (NCDEX) rose 1.8% to 2,770 rupees/100 kilograms.

Ashok Jain, chairman of the Mumbai Sugar Trader Association in India, said that due to the coming holiday season, demand has begun to pick up, but the market still does not know how much sugar the government will put into the domestic market in August. It can be said that the government’s decision will determine the trend of sugar prices. . The market expects that the government's efforts to curb rising sugar prices during the holiday season may increase the amount of sugar put on the market in August.

It is estimated that India will produce 24.2 million tons of sugar this year, which is higher than the domestic consumption of 220-33 million tons. Previously, the market expected that the total sugar output of India in the 10-11 year of sugar production would increase by 33% from the 09-10 sugar production year to the level of 25 million tons; it is estimated that the sugar production in India will increase to 1-12 years of sugar production. At the level of 26.5 million tons, the consumption will still be at the level of 22 million tons.

In addition, on July 21, the British ED&F Man trading company official stated that due to the domestic sugar production increase for two consecutive years, it is estimated that the 11-12 sugar years to be started in October of this year may have an export volume of 3 million tons in India.

(1 USD = 44.1 Indian rupees)

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