India Sugar
Prices remain flat in key mkts; ICE down on higher surplus view
This story was originally published at 16:47 IST on 1 July 2025
Register to read our real-time news.Informist, Tuesday, Jul. 1, 2025
By Afra Abubacker
NEW DELHI – Ex-mill prices of sugar remained steady in key markets of Uttar Pradesh and Maharashtra Tuesday due to parity in supply and demand, traders said. With Kavad Yatra set to start from next week, prices in Uttar Pradesh may rise marginally. However, prices are likely to be largely range-bound this week due to poor demand and lower sales quota for July, they added.
The government has set the sugar sales quota for July at 2.2 million tonnes, down 4.3% from June and down 8.3% from a year ago. The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear arrears of sugarcane farmers.
Sugar prices were unchanged in Uttar Pradesh, said Naresh Gupta, a trader from northern India. Typically, sugar demand from soft drink makers and ice cream manufacturers declines in July with the fall in temperature due to the monsoon season.
Prices may rise marginally in Uttar Pradesh as bulk buyers buy sugar ahead of the Kavad Yatra starting from Jul. 11. However, prices may ease as purchases could trickle down in the subsequent days due to road blocks on account of the Yatra, Gupta said.
Prices remained unchanged in Maharashtra. "Market is flat entirely. Demand and supply are maintained," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.
The following are the highlights of sugar prices in the domestic market:
--Flat at INR 3,820-INR 3,920 per 100 kg in western Uttar Pradesh
--Flat at INR 3,830-INR 3,925 per 100 kg in central Uttar Pradesh
--Flat at INR 3,942-INR 4,060 per 100 kg in Mumbai
--Flat at INR 3,820-INR 3,880 per 100 kg in Kolhapur
At 1539 IST, sugar prices on the Intercontinental Exchange were down 1.4% at 16.9 cents per pound. Prices fell due to projection of higher global sugar surplus. Sugar broker Czarnikow has pegged global surplus in 2025-26 at an eight-year high of 7.5 million tonnes. Meanwhile, global sugar production is estimated at 185.9 million tonnes in 2025-26. If sugar production increases to the estimated view, it would be the second-highest sugar production on record. End
US$1 = INR 85.52
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
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