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Informist, Tuesday, Feb. 25, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh and Maharashtra rose Tuesday after the release of the monthly sales quota for March as it is deemed to be insufficient, said traders. Prices are likely to be on an upward trend as there is anticipation of firm demand in the coming month, they said.

The Centre has set the domestic sugar sales quota for March at 2.30 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X Tuesday. The quota for the upcoming month is 2.2% higher than last month, but down 2.1% from 2.35 million tonnes in March last year.

Market players were anticipating the March sales quota to be 2.35 million tonnes-2.40 million tonnes amid upcoming festivals such as Holi and with the onset of summer season.

Mills in Uttar Pradesh raised prices by INR 10-INR 20 per 100 kg as the sales quota for March is considerd to be insufficient, said Naresh Gupta, a local trader from north India. Prices are likely to increase by another INR 30-INR 40 per 100 kg in the coming days as there will be firm demand from bulk consumers of sugar such as ice-cream and cold-drink manufacturers, said Gupta. In the resale market too, prices increased by INR 10 per 100 kg, he said. 

Mills in Maharashtra also raised rates by INR 20-INR 30 per 100 kg after the release of the sales quota. Before the release, prices were stable, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Prices are likely to rise by another INR 20-INR 25 per 100 kg in the coming days, he added.

As of Thursday, mills in Maharashtra manufactured 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. About 38 mills in Maharashtra, the top sugar producer, have finished crushing for the season against 11 mills in the same period 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 Tuesday:

-Up INR 10-INR 20 at INR 3,940-INR 4,025 per 100 kg in western Uttar Pradesh

-Up INR 10-INR 20 at INR 3,940-INR 4,025 in central Uttar Pradesh

-Up INR 20-INR 30 at INR 3,840-INR 3,910 per 100 kg in Kolhapur, Maharashtra

-Up INR 20-INR 30 at INR 3,840-INR 3,910 per 100 kg in Mumbai, Maharashtra

At 1924 IST, sugar prices on the Intercontinental Exchange were up 0.6% at 21.22 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 of sugar, down 14.4% from 31.9 million tonnes last year, according to the Indian Sugar Mills & Bio-Energy Manufacturers Association. Lower availability of sugar supports global prices of the sweetener.  End

US$1 = INR 87.21

Edited by Tanima Banerjee

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