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Informist, Tuesday, Aug. 5, 2025

By Taniva Singha Roy

MUMBAI – Ex-mill prices of sugar were steady in the key markets of Uttar Pradesh and Maharashtra as there were no takers in the market at higher rates, said traders. Demand for sugar has slowed down due to high prices, they said. 

Mills in Uttar Pradesh kept prices steady Tuesday as there was little demand at elevated price levels, said Naresh Gupta, a trader from north India. Prices have risen nearly INR 90-INR 100 per 100 kg after the release of the sales quota for August, due to concerns about lower availability later, said Gupta. 

After the release of the sales quota, resellers stocked up in a hurry as they were concerned that mills would run out of stock fast, Gupta said. The government has set the August sales quota for sugar mills at 2.25 million tonnes, below market expectations of 2.35 million tonnes to 2.40 million tonnes.

The government's allocation of 2.25 million tonnes of quota to sugar factories for sales in domestic markets during August is likely to leave a closing stock of around 6.80 million tonnes at the end of the month, which may create a tight situation with festival demand ahead, according to media reports.

Mills in Maharashtra also kept prices of the sweetener steady as there was not much demand at elevated price levels, 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 3,915-INR 4,030 per 100 kilograms in western Uttar Pradesh

--Flat at INR 3,935-INR 4,060 per 100 kg in central Uttar Pradesh

--Flat at INR 4,062-NR 4,162 per 100 kg in Mumbai

--Flat at INR 3,930-INR 3,990 per 100 kg in Kolhapur

At 1728 IST, sugar prices on the Intercontinental Exchange were down 1.3% at 16.04 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

US$1 = INR 87.80

Edited by Saji George Titus

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