Improvement in Sugar Prices Due to New Quota and Seasonal Demand

New Delhi: Sugarcane crushing is progressing at a strong pace in sugar mills across the country, and indications point toward a healthy increase in sugar production. The Union Ministry of Food has released a free-sale quota of 2.25 million tonnes of sugar for February, which appears to be in line with market expectations. The Lagansara season is underway and temperatures have begun to rise. Industrial demand for sugar has started to emerge, and demand related to Holi is also expected to strengthen. Overall, the country has an adequate stock of sugar. Mill Delivery Prices During the week from January 31 to February 6, mill delivery prices of sugar declined by ₹10 per quintal each in Eastern Uttar Pradesh and Bihar, and by ₹60 per quintal in Madhya Pradesh. However, prices improved by ₹10 per quintal each in Western Uttar Pradesh and Gujarat, while prices in Punjab remained stable. It is noteworthy that mill delivery prices in these states are generally much higher compared to Maharashtra and Karnataka. Spot Market Prices In the spot market, sugar prices in Delhi remained unchanged at ₹4,300–4,475 per quintal during the review week. However, prices in Indore jumped by up to ₹80 to ₹4,100–4,200 per quintal, while Raipur saw an increase of ₹50, reaching ₹4,125–4,200 per quintal. Prices in Kolkata remained steady at ₹4,200–4,350 per quintal. Mumbai Market In the Mumbai (Vashi) market, improved trading activity led to a ₹50 increase in spot prices, reaching ₹3,870–4,070 per quintal. Similarly, Naka port delivery prices rose by ₹50 to ₹3,820–4,000 per quintal. This clearly indicates a revival in sugar demand. Tender prices also strengthened during the week, rising by ₹20–30 per quintal in Maharashtra and ₹25 per quintal in Karnataka, providing some relief to sugar mills.

Insert title here