Sugar prices continue to fall under increasing sugar production pressure

Kunshen Sugar Net May 4, 2011 Reuters Mumbai News According to traders, despite the government's authorization to export self-produced sugar, domestic sugar prices have resumed on Tuesday in the face of sharp increases in domestic sugar production. Falling, however, civil demand is still supporting the price of sugar.

The price of S-grade sugar on the Kolhapur market in the state of Maharashtra (Mabang) fell by 0.26% to 2,653 rupees per 100 kilograms (about US$59.7) on Tuesday, while India The price of sugar futures for May delivery on the Commodity and Derivatives Exchange (NCDEX) rose by 0.48% to 2,716 rupees/100 kilograms.

In its announcement released on Friday, the Indian Federal Government decided to reduce the amount of sugar that was put into the domestic market in May from 1.90 million tons in the same month last year to 1.75 million tons.

Harakhchand Vora, vice-president of the Mumbai Sugar Traders Association, said that monthly civilian demand is relatively normal, which has played a role in preventing the decline in sugar prices. Of course, sugar mills are unwilling to cut prices because the government has agreed to export sugar. Selling sugar is also one of the reasons why there is no deep drop in the price of sugar.

Under normal circumstances, the wage earners in India purchase the food needed for one month in the first two weeks of each month. From previous years, the demand for sugar from ice cream and cold drink manufacturers will increase after summer temperatures rise.

The news from India’s sugar industry this week said that India has produced 22.6 million tons of sugar since the start of October 10 last year, which is a year-on-year output of 18.2 million tons compared to 09-10. 24% increase.

Estimation of 10-11 years of sugar production India's total sugar production will increase by 33% to a level of 25 million tons compared to 09-10 sugar production year, while the country’s sugar demand is still at 22 to 23 million tons. .

Recently, India has officially launched a plan to export 500,000 tons of self-produced sugar. The news from the Indian government on Thursday stated that as the government had given green light to export 500,000 tons of self-produced sugar on April 19th, the government had issued nearly 300,000 yuan recently. Tons of export licenses for sugar production.

(1 US dollar = 44.46 rupees)