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Informist, Thursday, Jul. 31, 2025

 

By Taniva Singha Roy

 

MUMBAI – Ex-mill prices of sugar in key markets of Uttar Pradesh rose Thursday, but were steady in Maharashtra, said traders. Prices in Uttar Pradesh rose as there was demand even at elevated rates, they said.

 

Mills in Uttar Pradesh raised prices by INR 10-INR 15 per 100 kg as there was demand at elevated rates due to the upcoming festival season, said Naresh Gupta, a trader from north India. "Whether it (prices) will sustain or not, only time will tell," Gupta added.

 

The government has set the August sales quota for sugar mills 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. Since demand for the sweetener typically rises ahead of festivals like Durga Ashtami, Raksha Bandhan, Krishna Janmashtami, Ganesh Chaturthi, and Onam, many of which are lined up in August, the quota is deemed to be insufficient.

 

Meanwhile, mills in India produced 25.8 million tonnes of sugar in the Oct-Jul period of the 2024-25 season, 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.

 

In Maharashtra, prices of the sweetener were steady on Thursday after increasing the previous day and prices have risen substantially after the release of the sales quota for August, 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 following are the highlights of sugar prices in the domestic market:

--Up INR 10-INR 15 at INR 3,915-INR 4,030 per 100 kg in western Uttar Pradesh

--Up INR 10-INR 15 at INR 3,935-INR 4,060 per 100 kg in central Uttar Pradesh

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

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

 

At 2056 IST, sugar prices on the Intercontinental Exchange were down nearly 1% at 16.33 cents per pound, tracking the fall in crude oil prices. Lower crude oil prices discourage the diversion of sucrose for ethanol production, thereby increasing sugar production.  End

 

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

 

US$1 = INR 87.59

 

Edited by Tanima Banerjee

 

 

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