More Stories

Informist, Monday, Jul. 6, 2026

 

By Afra Abubacker

 

MUMBAI – Ex-mill prices of sugar rose in major markets of Maharashtra owing to increased speculative demand but remained steady in Uttar Pradesh, market participants said. Sugar prices rose in anticipation of supply tightness in the coming months and lingering concern over production in the upcoming sugar season.

 

"Prices are up INR 40-INR 50 on sentimental buying. There is no supply concern right now, but there is worry of tight supply later," Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association, said. 

 

Asked for the price outlook in the coming days, Kuvadia said it is difficult to gauge the market amid increased speculative participation. "Sugar prices are up some 200 rupees since July sales quota was announced late June," he said.

 

Mills are required to sell only 2.2 million tonnes in July, down 2.2% from last month but unchanged on year. 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. In addition, mills in Maharashtra are mandated to sell only 718,170 tonnes of sugar by the end of July, down nearly 8% from June.

 

The closing sugar stock as of September end is estimated at 3.5 million tonnes, down from roughly 5.0 million tonnes last year, G.K. Sood, an agricultural expert, said. "Considering that there is an expectation of supply tightness in the market, prices are adjusting to it," Sood said, adding that there are many festivals, such as Ganesh Chaturthi, lined up before September. 

 

Sood said sugar prices are coming on a par with the cost of production after two years. "It is a good thing for sugar mills economically. Mills were making money from sales of by-products." Although rains have improved recently over Maharashtra, easing concern about poor rainfall, concern over sugarcane area and yields linger amid forecasts of below-normal monsoon rainfall. 

 

The India Meteorological Department has projected the rainfall during the southwest monsoon season to be "below normal" at 90% of the long-period average. The rainfall was 40?low normal in June.

 

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

--Flat at INR 4,230-INR 4,330 per 100 kg in western Uttar Pradesh

--Flat at INR 4,230-INR 4,350 per 100 kg in central Uttar Pradesh

--Up INR 40-INR 50 at INR 4,170-INR 4,210 per 100 kg in Kolhapur

--Up INR 40-INR 50 at INR 4,280-INR 4,330 per 100 kg in Mumbai

 

At 1838 IST, the price of sugar on the Intercontinental Exchange was up 0.6% at 14.94 cents per pound. Sugar prices rose amid concern about lower global sugar production in key regions due to El Nino conditions.  End

 

US$1 = INR 95.39

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

 

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.