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Informist, Tuesday, Jul. 29, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar in key markets in Uttar Pradesh and Maharashtra rose again Tuesday in anticipation of higher demand amid a lower sales quota for August, traders said. Prices are likely to be higher next month with demand rising ahead of the festival season, they said.

Mills in Uttar Pradesh raised prices by INR 10-INR 15 per 100 kg as demand from bulk consumers of sugar such as confectioners and ice-cream and cold-drink manufacturers is expected to increase from August, said Naresh Gupta, a trader from north India. Moreover, the sales quota for August is considered insufficient to meet demand, which also supported prices, he said.

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 Monday. The quota for next month is over 2% higher than 2.20 million tonnes each in August last year and in July.

Due to a lower production outlook and falling demand, the sales quota for July, though meagre, was sufficient, said Gupta. But in August, demand starts rising again with a long line of festivals scheduled from the month until Diwali in October and the quantity allocated will not be enough, he said.

In Maharashtra, prices of the sweetener rose INR 50-INR 60 per 100 kg as the sales quota was seen to be insufficient to meet the demand expected in August, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Mills will also not be under pressure to meet the quota as they are of the view that all stocks will be sold easily before the month ends, Kuvadia added.

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

--Up INR 10-INR 15 at INR 3,905-INR 4,015 per 100 kg in western Uttar Pradesh

--Up INR 10-INR 15 at INR 3,925-INR 4,045 per 100 kg in central Uttar Pradesh

--Up INR 50-INR 60 at INR 4,032-NR 4,142 per 100 kg in Mumbai

--Up INR 50-INR 60 at INR 3,920-INR 4,010 per 100 kg in Kolhapur

At 1913 IST, sugar prices on the Intercontinental Exchange were up nearly 1% at 16.55 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 86.81

Edited by Rajeev Pai

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