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Informist, Monday, Jul. 28, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar rose in the key markets of Uttar Pradesh and Maharashtra on Monday due to a lower-than-expected sales quota for August, said traders. Prices are likely to be higher during this month as demand will increase ahead of the festival season, they said.

Mills in Uttar Pradesh raised prices by INR 15-INR 20 per 100 kg as the sales quota was lower than expected, said Nareash Gupta, a trader from north India. The government has set the domestic sugar sales quota for August at 2.25 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X on Monday. The quota for next month is over 2% higher than 2.20 million tonnes each in August last year and July. 

The sales quota for August is deemed to be insufficient considering high demand during this time owing to the upcoming festivals, said Gupta. The sugar industry had expected a higher sales quota of 2.35-2.4 million tonnes due to festivals lined up from August onwards. 

Due to a lower production outlook and falling demand, the sales quota was meagre in July, said Naresh Gupta, a trader from north India. However, the demand is expected to increase next month onwards ahead of the festivals, he said. Prices will be on an upward trend in August as rates have been lower for a very long time and also there will be firm demand for the sweetener from confectioners and other bulk buyers, traders said. Prices are likely to stay at higher levels for the next three months, traders said.

In Maharashtra, sweetener prices rose by INR 30-INR 40 per 100 kg as the salese quota of was considerd insufficient for demand in August, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. 

The following are the highlights of sugar prices in the domestic market:

--Up INR 15-INR 20 at INR 3,895-INR 4,000 per 100 kg in western Uttar Pradesh

--Up INR 15-INR 20 at INR 3,915-INR 4,030 per 100 kg in central Uttar Pradesh

--Up INR 30-INR 40 at INR 4,010-NR 4,102 per 100 kg in Mumbai

--Up INR 30-INR 40 at INR 3,870-INR 3,950 per 100 kg in Kolhapur

At 1955 IST, sugar prices on the Intercontinental Exchange were up 0.4% at 16.37 cents per pound. Sugar prices rose, tracking a rise in crude oil prices. Higher crude oil prices lead to diversion of sucrose for ethanol production, thereby reducing sugar production.  End

US$1 = INR 86.66

Edited by Akul Nishant Akhoury

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