Weekly Review-Sugar

15-Mar-2025 08:49 PM

Sugar prices remain stable amid normal business

New Delhi. Despite the hustle and bustle of Holi festival, reduction in production estimates by ISMA and ongoing export process of 10 lakh tonnes, the mill delivery price and spot market price of sugar remained stable to a great extent during the week of 8 to 9 March.

Mill Delivery Price

However, during the week under review, the mill delivery price of sugar improved by Rs. 40 in western Uttar Pradesh and Rs. 10 in Bihar and it also improved by Rs. 10-20 in Gujarat, but it softened by Rs. 60 in Punjab. In all the producing states, the plant delivery price of sugar is running higher than the ex-factory minimum selling price fixed by the government.

Spot Price

As far as spot market price is concerned, sugar price in Delhi fell by Rs 50 to Rs 4300/4400 per quintal but improved by Rs 10 to Rs 4170/4270 per quintal in Indore while it remained stable at Rs 4250/4325 per quintal in Raipur and Rs 3930/4130 per quintal in Mumbai (Vashi). Naka Port Delivery Price also remained unchanged at Rs 3880/4080 per quintal. Price improved by Rs 20 per quintal in Kolkata.

Tender

Sugar tender improved by Rs 40-50 to Rs 3750/3950 per quintal in Maharashtra but remained almost stable at Rs 3785/4000 per quintal in Karnataka.

Price

Due to high domestic market price, millers are reluctant to contract sugar for export purpose. So far, out of the total allocated export quota of 10 lakh tonnes, export contracts for about 6 lakh tonnes of sugar have been signed and about 2.50 lakh tonnes have been supplied by the millers.

Quota

The quota for domestic sale (freesale) of sugar for March is also normal, so there is no extra pressure on mills to sell their quota. The domestic demand for sugar has started increasing as there are signs of increase in its industrial consumption. ISMA has estimated the sugar production to fall to 264 lakh tonnes from 319 lakh tonnes in the last season.