Delayed crushing lifts sugar spot prices

MUMBAI: Spot sugar prices rose for a second consecutive session on Wednesday on supply concerns after crushing was delayed due to rains and on expectations of an increase in state intervention price, dealers said.

In Kolhapur, a key market in top producer Maharashtra, the price of the most traded S-variety sugar rose 2.4% to Rs 3,034.15 per 100 kg. In Vashi wholesale market, medium variety sugar rose by Rs 28.75/73.75 to Rs 3,175/3,290 per 100 kg. Similarly, small variety sugar rose by Rs 29.75/58.75 to Rs 3,090/3,170 per 100 kg.

Crushing has been delayed due to rains in sugar producing regions in Karnataka and Maharashtra earlier this month. A local TV channel quoting sources said the government may replace the statutory minimum price (SMP), a government recommended guarantee price for sugarcane farmers, with fair and remunerative price (FRP).