Madhya Pradesh government has rolled back the mandi tax levied on purchase of pulses for milling from other states. The Indore-based All India Dal Mill Association had urged the government to roll back the tax to encourage millers in the state. Mills in Madhya Pradesh were losing business as processed pulses from other states such as Gujarat, Maharashtra and Chhattisgarh were cheaper due to absence of any tax. Mills in Madhya Pradesh had to pay an additional 2.20 rupees on every transaction of 100 rupees as mandi tax.
Chana down as demand wanes at higher prices.
Chana prices fell in Delhi as the recent rise in prices have hit demand. In Delhi, the benchmark market for chana, prices were at 4,500-4,550 rupees per 100 kg, down 20-30 rupees. Arrivals of chana in Delhi were unchanged at 225-300 tn. There is some selling pressure in the local market on talk that NAFED may sell chana. The chana August contract on the NCDEX was down because market participants booked profits after the contract rose to one-week high of 4,248 rupees per 100 kg.
India Sugar Up in Maharashtra on rise in demand from bulk buyers.
Prices of sugar rose in the key wholesale markets of Maharashtra due to renewed demand from bulk buyers. Medium-grade sugar was sold at 3,540 rupees per 100 kg in Mumbai, up 5 rupees, and in Kolhapur, it was quoted 10 rupees higher at 3,415 rupees per 100 kg. Demand has improved ahead of festivals such as Janmashtami and Raksha Bandhan. So, mills have raised prices. Sugar prices in the key wholesale markets of north India, however, remained steady amid lacklustre trade. The sweetener was quoted at 3,535 rupees per 100 kg in Delhi and at 3,500 rupees in Muzaffarnagar, both largely unchanged. Prices of sugar are likely to spiral downward in the long term due to expectations of record production next season.
Uttar Pradesh sees 2018-19 sugar output 13 mln tn, up 7.4% on year.
Sugar production in Uttar Pradesh is likely to touch an all-time high of around 13 mln tn in 2018-19 (Oct-Sep), up 7.4% on year. Mills across the state have produced a record 12.1 mln tn sugar this year, surpassing the previous high of 8.8 mln tn in 2016-17. Sugar output in the state is likely to rise on the back of higher area under cane in 2018-19. As of Thursday, cane acreage in Uttar Pradesh was 2.2% higher on year at 2.31 mln ha.
Govt says cane arrears fall to 82 bln rupees as of Fri from 145 bln.
Cane arrears on fair and remunerative price basis have nearly halved to 81.5 bln rupees as of Friday from 145.4 bln rupees during May end due to a slew of measures taken by the government to bail out the cash-strapped sugar industry. Depressed sugar price due to excess sugar production during current sugar season 2017-18 has adversely affected the financial health of sugar mills. The cane arrears on state advised price basis also came down to 166.0 bln rupees as of Thursday from 232.2 bln rupees in May. As a result of various interventions undertaken by the government, the ex-mill prices of sugar rose to 30-33 rupees a kg, thereby improving the liquidity position of sugar mills, from 24.5-26.0 rupees a kg. The excess sugar production during the current sugar season and indication of surplus production in the ensuing season has adversely affected the market sentiment due to which the ex-mill sugar prices in the domestic market have fallen sharply. The Centre has also created the buffer stock of 3.0 mln tn to help the growers and the industry.