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Informist, Tuesday, Sept. 30, 2025

 

By J. Navya Sruthi

 

MUMBAI – Ex-mill prices of sugar were steady in the key markets of Uttar Pradesh and Maharashtra due to subdued demand, traders said. Prices are likely to remain rangebound with an upward bias, as millers expect demand to pick up ahead of the Diwali festival.

 

Mills in Uttar Pradesh kept prices steady as there was limited demand for sugar for the Dussehra festival, said Naresh Gupta, a trader from north India. Prices are likely to increase by INR 10-INR 20 per 100 kilograms after the first week of October, Bombay Sugar Merchants Association Secretary Mukesh Kuwadia said.

 

Traders expect demand to increase ahead of Diwali, as demand from bulk sugar consumers, such as confectioneries, is expected to rise during that time. Kuwadia said the October sugar sales quote is likely to be sufficient, as major demand before Diwali is expected to prevail in the market only until Oct. 17 or Oct. 18. This year, the Diwali festival will be celebrated on Oct. 21. 

 

The government has set the domestic sugar sales quota for October at 2.40 million tonnes, up 2% from 2.35 million tonnes in September. However, the quota is nearly 6% lower than 2.55 million tonnes in October last year.

 

India is estimated to close the 2024-25 sugar season (Oct-Sept) with a stock of 4.74 million tonnes. This is largely in line with the government's projection of a closing stock of 5.00 million tonnes but sharply lower than the closing stock of 8.00 million tonnes a year ago. 

 

The government is not considering hiking the minimum selling price of sugar, as current ex-mill prices are remunerative for the upcoming sugar season starting Oct. 1, Informist reported exclusively, quoting two senior government officials. Mills have to pay sugarcane farmers 4.4% more than last year from Wednesday as the government has hiked the fair and remunerative price of cane to INR 355 per 100 kilograms from INR 340.

 

Following are the highlights of sugar prices in the domestic market:

 

--Flat at INR 3,960-INR 4,130 per 100 kg in western Uttar Pradesh

--Flat at INR 3,960-INR 4,130 per 100 kg in central Uttar Pradesh

--Flat at INR 4,062-INR 4,144 per 100 kg in Mumbai

--Flat at INR 3,900-INR 4,060 per 100 kg in Kolhapur

 

At 1859 IST, sugar prices on the Intercontinental Exchange were down 0.5% at 16.37 cents per pound, tracking losses in crude oil prices. Lower crude oil prices lead to less diversion of sucrose for ethanol production, thereby increasing the availability of sugar and putting downward pressure on the prices of the sweetener.  End

 

US$1 = INR 97.93

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

 

Edited by Saji George Titus

 

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