India Sugar
Down in key markets as reduced buying leads to price correction
This story was originally published at 18:31 IST on 14 February 2025
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By J. Navya Sruthi
MUMBAI – Ex-mill prices of sugar in the key markets of Maharashtra and Uttar Pradesh have corrected on lower buying at higher price levels, traders reported. Prices are expected to remain range-bound, fluctuating by INR 10-INR 20 per 100 kg on either side, they added.
In Uttar Pradesh, mills lowered prices by INR 10-INR 15 per 100 kg as there was insufficient buying at higher levels, said Naresh Gupta, a trader from north India. Prices had previously increased after the government approved sugar exports, driven by market speculation of a supply shortage. However, with no buyers at the higher levels, prices have corrected, Gupta said, adding that an upward price trend is unlikely in the near term.
The government has allowed the export of 1 million tonnes of the sweetener in the sugar year 2024-25 (Oct-Sept) to stabilise prices and ensure timely payments to farmers. The Centre had banned sugar exports in June 2022 on concerns of lower production. India is the second-largest sugar producer globally, after Brazil.
In Maharashtra, mills have reduced prices by INR 10 per 100 kg due to poor demand at higher levels, according to Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. A few days earlier, mills had increased prices by INR 30-INR 40 per 100 kg amid concerns of lower sugar output. Kuvadia expects prices to remain range-bound with fluctuations of INR 10-INR 20 per 100 kg on either side.
The Indian Sugar Mills & Bio-Energy Manufacturers Association has projected sugar production for 2024-25 at 27.3 million tonnes, down 14.4% from 31.9 million tonnes in 2023-24.
The following are the highlights of sugar prices in the domestic market on Thursday:
-Down by INR 10-INR 15 at INR 3,890-INR 4,040 per 100 kg in western Uttar Pradesh
-Down by INR 10-INR 15 at INR 3,890-INR 4,040 in central Uttar Pradesh
-Down by INR 10 at INR 3,820-INR 3,880 per 100 kg in Kolhapur, Maharashtra
-Down by INR 10 at INR 3,982-INR 3,880 per 100 kg in Mumbai, Maharashtra
At 1600 IST, sugar prices on the Intercontinental Exchange were down 0.1% at 18.82 cents per pound due to a fall in supply. The estimate for global sugar surplus for 2025-26 was cut to 4.1 million tonnes from the previous estimate of 5.2 million tonnes, See It Market, which provides research and market insights, said in a report quoting data released by Covriganalytics, an independent sugar and ethanol market intelligence firm. End
US$1 = INR 86.82
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Subhojit Sarkar
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