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Informist, Tuesday, Jul. 7, 2026

 

By Afra Abubacker

 

MUMBAI – Ex-mill prices of sugar were largely steady in major markets of Maharashtra after rising sharply Monday on concern about below-normal rains affecting production in the upcoming sugar year 2026-27 (Oct-Sept). Sugar prices are likely to be supported by anticipation of stocks tightening in the coming months, traders said.

 

Ex-mill sugar prices have risen over INR 200 per 100 kilograms since late June amid production concerns, Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association, said. However, all-India average retail sugar rates have been relatively stable at around INR 47.17 per kg, against INR 46.34 a month ago, according to data from the consumer affairs department. The price volatitily has been largely limited to ex-mill rates and wholesale markets, G.K. Sood, agricultural expert, said.

 

Although monsoon rainfall has revived in recent days in key sugarcane-cultivating states such as Maharashtra, the weather department has forecast India to have sub-par rains during Jun-Sept amid El Nino conditions. The rainfall in June was 40?low normal.

 

"Any prolonged moisture stress can adversely affect cane yield and sugar recovery, directly impacting sugar output," according to Uppal Shah, editor-in-chief, ChiniMandi. "At this stage, it is premature to predict the final production figure, but the market is clearly attaching a weather premium to sugar prices."

 

In addition, the market expects the sugar closing stock as of September-end to narrow to 3.5 million tonnes, down significantly from last year's 5.0 million tonnes. Typically, the sugar market considers "comfortable" closing stock at 5.0 million tonnes as new season sugar supplies will only pick up pace around November.

 

Despite the delayed onset and sluggish progress of the southwest monsooon, initial sowing trends are not alarming for some kharif crops such as sugarcane. All-India sugarcane acreage as of Friday was up 1.5% on year at 5.76 million hectares. Typically, mills start producing sugar from harvested cane around October. "Continued favorable monsoon conditions are expected to boost kharif sowing further, improving crop prospects and supporting agricultural production targets despite the delayed start to the season," Kedia Stocks & Commodities Research said. 

 

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

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

--Flat at 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 down 0.5% at 15.14 cents per pound.  End

 

US$1 = INR 94.96

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

 

Edited by Rajeev Pai

 

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