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Informist, Thursday, Apr. 3, 2025

By J. Navya Sruthi

MUMBAI – Ex-mill prices of sugar in the key markets of Uttar Pradesh and Maharashtra were steady for the second consecutive day on Thursday, traders said. The demand was sluggish at elevated prices in the north, while demand and supply were on par in Maharashtra, they said. Traders expect prices to remain rangebound in the near term moving INR 10-15 per 100 kg on either side.  

Mills across Uttar Pradesh kept prices steady Thursday as there was sluggish demand at the current elevated price levels, said Naresh Gupta, a trader from north India. "Usually there should be demand at this time as summer has already started," he added. Usually, demand from bulk consumers of sugar such as ice cream and cold drinks manufacturers increases during summer as the temperatures soar across the country.

After the release of the sales quota for April, prices rose by INR 40 per 100 kg as the quota of 2.35 million tonnes was deemed to be insufficient for the month. But the price increase has not been fully absorbed yet, hence mills are in a wait-and-watch mode and not increasing or cutting prices at the moment, Gupta said. 

The government has set the domestic sugar sales quota for April at 2.35 million tonnes, 2.2% higher than last month, but down 6% from 2.5 million tonnes last year. The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers. A lower quota restricts mills from selling the sugar they have produced.

Mills in Maharashtra also kept prices steady Thursday as demand and supply were on par, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. He said prices are likely to remain rangebound in the near term due to a lack of new cues. 

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

--Flat at INR 3,905-INR 4,035 per 100 kg in western Uttar Pradesh

--Flat at INR 3,905-INR 4,065 per 100 kg in central Uttar Pradesh

--Flat at INR 3,810-INR 3,880 per 100 kg in Kolhapur, Maharashtra

--Flat at INR 4,036-INR 4,142 per 100 kg in Mumbai, Maharashtra

At 1630 IST, sugar prices on the Intercontinental Exchange were down 1.7% at 19.26 cents per pound, tracking a fall in crude oil prices on the New York Mercantile Exchange. Lower crude oil prices discourage the diversion of sugarcane for the production of ethanol, leading to a rise in sugar supplies.  End

US$1 = INR 85.43

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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