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Informist, Thursday, Oct. 1, 2026

 

By Afra Abubacker

 

NEW DELHI – Ex-mill sugar prices remained steady in major markets amid several government interventions to boost supply. Despite sugar mills being mandated to sell a lot of sugar by Oct. 15, prices were flat as demand ahead of festivals is absorbing higher supplies, market participants said. Traders see sugar prices remaining largely range-bound in the coming week. 

 

Wednesday, the government set the first fortnight sales quota for October at 1.4 million tonnes, up from 1.30 million tonnes in the corresponding period a month ago. It also mandated mills to sell at least 45% of the allocated quota in the first week, and the remaining in the second week. 

 

Sugar prices will remain largely steady over the next two weeks, moving within a thin band of INR 20-INR 30 per 100 kg, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said. For the following weeks, sugar prices will be determined by the second fortnight sales quota, he added. 

 

Kuvadia said the next sales quota is likely to remain the same or inch higher. "Sugar demand will be stronger from mid-month, so quota should be 14 lakh tonnes or higher. However, if prices are continuously falling, government might give a lower quota," he added. 

 

Earlier in the day, the government further tightened the stockholding limit for sugar dealers to 100 tonnes from 200 tonnes, effective from Oct. 15-Nov. 30. It also reduced the stockholding period to 15 days from 30 days to prevent hoarding and ensure smooth supply during festivals. The government has been gradually tightening stock limits for traders since August to keep sugar prices in check. In August, traders were allowed to hold 400 tonnes of sugar. 

 

Ex-mill sugar prices have declined 28% from the peak in August and remained stable over the last three weeks. Meanwhile, average retail prices of sugar fell 15% and are expected to decline further as lower ex-mill prices pass through the supply chain, according to the government.

 

Following were the ex-mill prices of sugar in the domestic market:

--Flat at INR 4,380–INR 4,430 per 100 kg in Kolhapur

--Flat at INR 4,592-INR 4,822 per 100 kg in Mumbai

--Flat at INR 4,480–INR 4,590 per 100 kg in Uttar Pradesh

--Up INR 20 at INR 4,310–INR 4,380 per 100 kg in Karnataka

--Flat at INR 4,400–INR 4,450 per 100 kg in Gujarat

--Flat at INR 4,500-INR 4,600 per 100 kg in Tamil Nadu

 

At 1733 IST, sugar on the Intercontinental Exchange was up 1.% at 18.82  cents per pound.  End

 

US$1 = INR 96.31

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

 

Edited by Avishek Dutta

 

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