Sugar at a 2-month high as millers hike ex-factory prices
24 Jul 2010
Sugar prices in India jumped over 6 per cent hitting two-month highs on Friday as traders raised prices to pass on the hike by millers.
The spike in sugar prices followed a joint decision taken by factories in Maharashtra and five other states to increase the ex-factory price of sugar by Rs200 per quintal.
In Kolhapur, the key market in Maharashtra, the most traded S-30 variety sugar was up 6 per cent at Rs2,755 ($58.7) per quintal (100 kg), the highest level since 10 May. In Vashi, the spot prices climbed 5.4 per cent to Rs2,828 per quintal.
Dealers said they have no choice since millers have decided to go ahead with the price hike.
Sugar factories decided to hike prices in view of the declining sugar prices in international market. In fact, the Indian Sugar Mills association had cancelled all import orders following the fall in international prices of sugar, fearing it may hot local prices.
The decision was reported to have been taken at a meeting organised by the Maharashtra State Co-Operative Sugar Factories Federation Ltd (Sakhar Sangh) on Thursday.