Sugar prices stable despite heavy selling by mills

PUNE: Sugar prices have remained stable despite heavy selling by Maharashtra mills since the Central government imposed stock limit on mills. Buying by traders for supplying to the public distribution system, demand for Durga Puja and bullish sentiment due to the long gap in rainfall in cane-growing areas helped mills make the quota sales.

The Centre has asked sugar mills to keep only 37% of their production by September-end and 24% by October end. “Rise in international markets, good festive demand for sweetener along with expectations of stronger demand with series of festivals ahead supported prices.However, mixed sentiments in spot markets and appreciation in rupee limited gains in sugar on domestic bourses," brokerage firm Geofin Comrade said.

Internationally, the ICE future prices of raw and white sugar have risen due to a slowdown in production in Brazil that escalated worries over supply. Sugar mills will have to sell about 5 million tonnes of sugar by October 31.