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Informist, Tuesday, Jan. 27, 2026

By Afra Abubacker

NEW DELHI – Ex-mill prices of sugar remained largely steady in key markets of Maharashtra and Uttar Pradesh Tuesday as traders awaited the government to announce the sales quota for February. The government announced the February sales quota post-market hours at 2.25 million tonnes, flat on year, but up 2.3% from 2.20 million tonnes in January. With fewer trade days next month and no major festivals lined up, the market had expected the government to set the domestic sugar sales quota for February at 2.20-2.25 million tonnes. 

"Market is flat. People are waiting for the government to release the February sales quota. It should be out any time today (Tuesday) or tomorrow (Wednesday), " said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. According to traders, sugar demand is expected to remain seasonally muted in February, though some support is seen from Ramadan and the ongoing wedding season in North India. Demand from bulk consumers such as soft drink and ice-cream makers typically eases during winter amid a drop in temperatures.

The government fixes sales quota to regulate domestic availability, support prices, and help mills clear sugarcane arrears to farmers. Mills were mandated to sell 2.20 million tonnes each in December and January. Though sugar consumption typically softens during winter months on account of lower demand from manufacturers of cold beverages and ice cream, the ongoing wedding-related demand in northern India has provided some support.

Though no official announcement on a higher minimum selling price has been made, ex-mill prices have firmed up over the past few sessions in anticipation of higher prices. Since Friday, market chatter of a higher minimum selling price has been doing the rounds, after ChiniMandi, a sugar trade media, reported that the government was likely to increase the minimum selling price to INR 37.50–INR 38.00 per kg. The minimum selling price of sugar currently is INR 31 per kg, since February 2019.

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

--M-grade sugar flat at INR 3,900-INR 4,080 per 100 kg in Uttar Pradesh

--Flat at INR 3,910-INR 3,992 per 100 kg in Mumbai

--Flat at INR 3,760-INR 3,800 per 100 kg in Kolhapur

At 1944 IST, the price of sugar on the Intercontinental Exchange was up 1% at 14.94 cents per pound, tracking gains in crude oil prices. Higher crude oil prices typically encourage more diversion for biofuel production, thereby lowering sugar availability.  End

US$1 = INR 91.72

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

Edited by Akul Nishant Akhoury

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