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Informist, Monday, Feb. 24, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were steady Monday due to poor demand, said traders. Mills also kept prices steady ahead of the March sales quota, and prices fluctuations, if any would happen after the monthly quota release, they said. 

Mills in Uttar Pradesh kept prices steady Monday as mills were unable to sell at higher price levels, said Naresh Gupta, a trader from north India. Prices could fall by INR 10-20 per 100 kg in the coming days if demand does not pick up, Gupta said. 

Meanwhile, the mills await the release of sales quota for March and market players are anticipating a monthly quota of 2.35-2.4 million tonnes as there are festivals such as Holi in March and the temperature is getting warmer at several perts of the country, he added.

The government has allowed mills in the country to sell 2.25 million tonnes of sugar in February. The government fixes the maximum quantity of sugar available for sale every month to check prices and help mills pay sugarcane farmers. In March 2024, the government had asked mills to sell 2.35 million tonnes of sugar.

Mills in Maharashtra, also kept prices steady Monday as they await the release of the sales quota for March, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. If the sales quota id 2.4 million tonnes, then there is a chance of prices falling by INR 50 per 100 kg, and if it is arround 2.35 million tonnes, prices could reman at the current levels, Kuvadia said. 

As of Thursday, mills in Maharashtra made 7.1 million tonnes of sugar, down from 8.5 million tonnes last year, according to the state Sugar Commissionerate data. Sugar output has fallen amid a decline in sugarcane yields. Maharashtra is the top sugar-producing state in the country. About 38 mills have finished crushing for the season in the state against 11 mills in the same period of year last year, the data showed. Mills had early closure this year due to lower availability of canes.

Following are the highlights of sugar prices in the domestic market on Monday:

-Flat at INR 3,830-INR 3,950 per 100 kg in western Uttar Pradesh

-Flat at INR 3,890-INR 3,980 in central Uttar Pradesh

-Flat at INR 3,820-INR 3,880 per 100 kg in Kolhapur, Maharashtra

-Flat at INR 3,880-INR 4,162 per 100 kg in Mumbai, Maharashtra

At 1912 IST, sugar prices on the Intercontinental Exchange were up 0.1% at 21.34 cents per pound. Mills across the country have produced 19.7 million tonnes of sugar, down 12% on year from 22.4 million tonnes in the same period a year ago, The Indian Sugar Mills & Bio-Energy Manufacturers Association said on Feb 17. For the current season ending September, India is estimated to produce 27.3 million tonnes, down 14.4% from 31.9 million tonnes last year, according to the Indian Sugar Mills & Bio-Energy Manufacturers Association. Lower avaiability of sugar is bullish for global sugar prices.  End

US$1 = INR 86.69

Edited by Deepshikha Bhardwaj

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