Sugar supply to rise ahead of Diwali: World market surges to 12-year high

- Bhoo Bazar : Dilip Shah

- Dry fruits and chocolates are likely to be more in demand than sweets during Diwali:

- Growth in jaggery consumption as well

After Ganpati festivals in the country, Navratri and Dussehra festivals are over and now the Diwali festivals are also approaching, the bustle has increased in various markets. Market experts are now saying that there will be special activity before Diwali especially in dry fruits, pulses and sugar and jaggery market. Apart from festivals in the country, when elections are coming up in various states, the government is also keeping a close eye on the sugar market and industry to control the market price of sugar at a reasonable level. Earlier various sweets were eaten more during festivals but now people have become more conscious about health and due to this the circulation of various dry fruits instead of sweets has been seen increasing in festivals. Due to this, the demand for sugar is seen to be affected. However, the circulation of chocolates increases during festivals and due to this, the demand for bulk consumption of chocolate manufacturers in the sugar market is seen to increase. Meanwhile, jaggery consumption has also increased. Now jaggery has started to be used in some classes instead of sugar in making tea. Many centers have also started serving jaggery tea. Meanwhile. Recently, the demand for cold drinks has increased due to the increase in weather and due to this, the sugar market and the industry have recently seen increased demand for bulk consumption from cold drink manufacturers. Meanwhile, in the Navi Mumbai wholesale sugar market, prices were seen in the range of Rs.3770 to Rs.3850 per kg and the price of fine goods in the range of Rs.3875 to Rs.4000.

The new season of sugar is approaching in the country. In the month of November, new goods are expected to come in the market. Although on the one hand sugar prices in the Indian markets have remained under control due to various efforts of the government, on the other hand the price of sugar in the world market has been seen to rise. According to offshore sources, sugar prices in the world market have risen to a new high of 12 years and the global price is likely to go up by 10 to 15 percent. The Indian government has put a brake on the export of sugar, which has led to a shortage of supply in the world market. Production in Thailand is estimated to fall by 15 to 20 percent. With ethanol prices in Brazil rising to a 3-month high, there are also rumors that diversion to ethanol will increase and sugar supply will decrease. In such an environment, a rapid boom has been seen in the world market.

Meanwhile, there were reports that the price of raw sugar (raw sugar) in the world market has crossed the level of 27.50 cents per cantaloupe. While the price of refined-white sugar has increased and reached close to 750 dollars per ton. When people in India were celebrating Dussehra, global prices rose by two to two and a half percent. In India, the government has released 15 lakh tonnes of free market sugar quota for the period up to November 15 and this quota has been released with effect from October 23. When the new sugar season of 2023-24 starts in India, the current stock of old sugar is estimated to be around 56 to 57 lakh tonnes. The recently released free sale quota of 1.5 lakh tonnes has been given to around 562 sugar mills. Prior to this, the government had initially released 15 lakh tonnes of free sale quota of sugar for the second fortnight of October and then an additional one lakh tonne quota was released, so the free sale quota for the second fortnight of October increased from 15 to 16 lakh tonnes. And now the quota for the first fortnight of November has been given as 15 lakh tonnes. But considering that this quota has been announced to be implemented from 23rd October, even out of this quota of 15 lakh tonnes, the informants were showing the calculation that more sugar will be poured in the market from 23rd October till the end of October. In view of this, the market is showing a significant increase in the supply of sugar in the market before the Diwali festivities. Meanwhile, according to Central Pollution Control Board sources, about 40 to 45 cooperative sugar mills in Maharashtra state have been told to close down. Action has been taken against these mills for violating laws and regulations related to environmental protection. As the new season is about to start, this issue has raised a lot of discussion in the sugar market and industry.