Day: May 5, 2017

Karnataka aims to produce 40 million tonne of sugarcane in 2017-18 (Jul-Jun), up 20% from the previous season, led by an increase in acreage. Karnataka is one of the major producers of sugarcane.

Madhucon Sugar and Power Industries and Dalmia Bharat Sugar have surrendered their quota of 13,940 tonne raw sugar allocated to them by the Directorate General of Foreign Trade for import of raw sugar. Madhucon Sugar had applied for a quantity of 21,000 tonne raw sugar from the south zone, while Dalmia Bharat Sugar had applied for 100,000 tonne raw sugar–50,000 tonne each from the east zone and the south zone. The Directorate General of Foreign Trade, however, allocated a quota of 4,313 tonne raw sugar to Madhucon Sugar, and 5,750 tonne raw sugar to Dalmia Bharat Sugar from the east zone and 3,877 tonne from the south zone. The mills surrendered the quota as the quantity allocated to them was very small and thus import would be unviable.

Prices of sugar rose in Mumbai and Kolhapur, as demand for the sweetener improved with Stuckists replenishing their inventories at the start of the month. In Maharashtra, prices rose also due to bargain buying after a fall in the last week. In Mumbai and Kolhapur, sugar prices were up 7 rupees per 100 kg from previous close. On the NCDEX, the most active May contract of sugar traded down 0.3% from the previous close. The government had on Apr 5 allowed duty-free import of 500,000 tonne of raw sugar under the tariff rate quota. On the National Commodity and Derivatives Exchange, sugar futures traded in a narrow range. Most active May contract of sugar was down 0.2% from the previous close. In north India, soaring prices are unlikely to sustain due to record high output in Uttar Pradesh.