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Informist, Wednesday, Jul. 1, 2026

 

By Afra Abubacker

 

NEW DELHI – Ex-mill prices of sugar rose in key markets of Uttar Pradesh and Maharashtra on Wednesday as forecasts of below-normal rains in July increased concern about production in the upcoming season. In addition, there was no selling pressure in the market as mills have a month left to complete the July sales quota. 

 

Tuesday, the India Meteorological Department said the country was likely to have a 'below-normal' rainfall in July as well, mainly due to persisting El Nino conditions. In June, rainfall was nearly 40?low the normal. 

 

Delayed rains and sluggish monsoon progression have impacted sugarcane sowing in key producing states. As of Monday, sugarcane acreage in Maharashtra was 33% down on year at 26,132 hectares, according to state agriculture department data. 

 

"Prices are up INR 80-INR 90 in Maharashtra markets...There is anticipation of lower rainfall impacting the next sugar season," said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

 

In addition, mills are required to sell only 2.2 million tonnes in July, down 2.2% from last month but unchanged on year, the food department said Wednesday. The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers.

 

Meanwhile, mills in Maharashtra are mandated to sell only 718,170 tonnes of sugar by July end, down nearly 8% from June. For Uttar Pradesh, the sales limit was raised by 0.5% on month to 823,485 tonnes for July, according to a notification on Tuesday. 

 

Mills in Uttar Pradesh raised prices by INR 20-INR 30 amid lack of selling pressure, said Naresh Gupta, a trader from north India. "Maharashtra prices had sharply risen today, and mills here wanted to increase prices," Gupta added. Going ahead, prices are likely to remain supported as sugar recovery from sugarcane will be impacted by subpar rains, traders said. 

 

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

--Up INR 20-INR 30 at INR 4,200-INR 4,290 per 100 kg in western Uttar Pradesh

--Up INR 20-INR 30 at INR 4,200-INR 4,300 100 kg in central Uttar Pradesh

--Up INR 80-INR 90 at INR 4,203-INR 4,290 per 100 kg in Mumbai

--Up INR 80-INR 90 at INR 4,150-INR 4,180 per 100 kg in Kolhapur

 

At 1807 IST, the price of sugar on the Intercontinental Exchange was up 1.6% at 15.06 cents per pound. Sugar prices rose amid concerns about lower global sugar production in key regions, including India and Brazil, due to El Nino conditions. End

 

US$1 = INR 95.24

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

 

Edited by Akul Nishant Akhoury

 

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