Sugar stays unchanged, market awaits Feb quota

NEW DELHI, Jan 27 (Commoditiescontrol) - The wholesale sugar market, which has been facing weak demand for the past several weeks, is now expected to get a direction from the quota for the next month i.e. February. Sugar was sold at the previous price in all the markets from north to south. Demand remained sluggish in all markets. According to traders, the demand will improve only when the winter subsides.

Sugar was sold at the previous price in the wholesale markets of Delhi and Uttar Pradesh. The mill rate of sugar in UP and North India remained the same. Last Tuesday, the mill rate was cut by Rs 10. According to traders, the demand remains very weak. The market can get direction from next month's quota. Delhi-based trader Sushil Agarwal said that if the government releases a quota of 19 lakh tonnes, then there may be a slight increase. Market sentiments will remain weak if the quota is 2 million tonnes or more. A quota of 17 lakh tonnes was released for February last year. The quota remains low as February has less than three days.

The slowdown in demand continued in the southern and western states as well. There has been no improvement in demand even after a fall of Rs 10-15 in the mill and market prices on Monday. The price remained stable even today. Industry sources said selling pressure on sugar mills is increasing as demand continues to remain weak. In such a situation, the market is not likely to get direction from the sale quota of February. Prices remained stable at Mumbai's Vashi Wholesale Market and Mumbai Naka.

Raw sugar is being sold at Rs 3050-3100 and white sugar at Rs 3150-3200 per quintal for export in Maharashtra and the neighbouring states of the port. The prices of sugar remained soft in the global market. Brazil's shortfall could be offset by higher sugar production in India and Thailand. Because of this, the bulls did not get support. March New York ICE Raw Sugar fell 0.29 cents, or 1.5 per cent, to 18.49 cents a pound. March London White Sugar fell by $4.20, or 0.8 percent, to $499.90 a tonne.