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Informist, Wednesday, Jul. 8, 2026

 

By Afra Abubacker

 

MUMBAI – Ex-mill prices of sugar rose in major markets of Maharashtra on Wednesday amid anticipation of stocks tightening in the coming months, but remained largely unchanged in Uttar Pradesh. Prices are likely to remain supported as the rainfall deficit in the ongoing monsoon season has added a weather premium to sugar rates, traders said.

 

"Market is up INR 10-INR 20. There is sentimental buying in the market," Mukesh Kuvadia, secretary, Bombay Sugar Merchants Association, said. However, he noted that there was no unusual spike in sugar purchases or demand from stockists despite worries about lower carry-forward stocks for next year. 

 

Stocks in the ongoing sugar season 2025-26 ending September are estimated to close at 3.5 million tonnes, significantly below 5.0 million tonnes last year. Typically, the sugar market considers 5.0 million tonnes as a "comfortable" closing stock, as new season sugar supplies will only pick up pace around November.

 

Although monsoon rainfall has revived in recent days in key sugarcane-cultivating states such as Maharashtra, the weather department has forecast that India will record sub-par rains during Jun-Sept amid El Nino conditions. Typically, mills start producing sugar from harvested cane around October.

 

In addition, the government has mandated mills to sell only 2.2 million tonnes in July, down 2.2% from last month but unchanged on year. Meanwhile, mills in Maharashtra are required to sell only 718,170 tonnes of sugar by July-end, down nearly 8% from June. For Uttar Pradesh, the sales limit was raised 0.5% on month to 823,485 tonnes for July, according to a government notification. 

 

"Ex-mill rates in Uttar Pradesh are largely unchanged. But resale market is soft...prices are down INR 5-INR 10," Naresh Gupta, a trader based in north India, said. While ex-mill rates refer to primary sales from sugar mills, and resale sugar rates refer to secondary sales between trading houses, distributors, and bulk buyers. 

 

The following are the highlights of ex-mill 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 10-INR 20 at INR 4,200-INR 4,260 per 100 kg in Kolhapur

--Up INR 10-INR 20 at INR 4,296-INR 4,380 per 100 kg in Mumbai

 

At 1753 IST, the price of sugar on the Intercontinental Exchange was up 1.3% at 15.34 cents per pound, tracking a rise in crude oil prices. Higher crude oil prices encourage greater sucrose diversion for ethanol production, reducing the availability of sugar in the market.  End

 

US$1 = INR 95.56

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

 

Edited by Avishek Dutta

 

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