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Informist, Wednesday, Jul. 30, 2025

By Afra Abubacker

NEW DELHI – Ex-mill prices of sugar in key markets of Maharashtra rose again Wednesday on rise in demand ahead of upcoming festivals and a lower-than-expected sales quota for August. Prices in Uttar Pradesh were largely unchanged, traders said.

"Stockists are expecting prices to rise further. The uptrend in prices will most likely continue for the week," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. Since the announcement of the August sales quota Monday, sugar prices have risen by about INR 70 per 100 kg, he added.

The government set the sales quota for August at 2.20 million tonnes, below market expectations of 2.35 million tonnes to 2.40 million tonnes. Industry players expected the sales quota to be higher as there is a string of festivals in August. Sugar demand typically rises ahead of festivals like Durga Ashtami, Raksha Bandhan, Krishna Janmashtami, Ganesh Chaturthi, and Onam, which are lined up in August this year.

"Mills in Uttar Pradesh quoted higher prices but the market is largely at the same levels (as Tuesday)," Naresh Gupta, a trader from northern India, said. Prices are likely to rise in the coming days due to expectations of increased sugar purchases ahead of festivals, he added. "Whether it (prices) will sustain or not, only time will tell," Gupta said.

Meanwhile, mills in India produced 25.8 million tonnes of sugar in the Oct-Jul period, 18.4% lower from 31.6 million tonnes produced in the same period a year ago, according to data from the National Federation of Cooperative Sugar Factories. Looking ahead, the industry is optimistic about the 2025–26 (Oct-Sept) sugar season amid a favourable monsoon. The Indian Sugar & Bio-energy Manufacturers Association will announce its estimates for the upcoming season Thursday.

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

--Flat at INR 3,905-INR 4,015 per 100 kg in western Uttar Pradesh

--Flat at INR 3,925-INR 4,045 per 100 kg in central Uttar Pradesh

--Up INR 10 at INR 4,042-NR 4,152 per 100 kg in Mumbai

--Up INR 20 at INR 3,970-INR 4,000 per 100 kg in Kolhapur

At 1555 IST, sugar prices on the Intercontinental Exchange were down 1% at 16.59 cents per pound, tracking fall in crude oil prices. Lower crude oil prices discourage the diversion of sucrose for ethanol production, thereby increasing sugar production.  End

US$1 = INR 87.42

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

Edited by Nishant Maher

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