Weekly Review- Sugar

22-Mar-2025 07:49 PM

Sugar market largely calm with normal business

Stable Market Amid Normal Business Activity

Following the Holi festival, sugar market activity remained subdued for a few days. However, prices held steady due to several factors:

• The arrival of summer season has increased sugar demand from the cold drinks and ice cream industries.

• Domestic sugar production is expected to decline by 50-60 lakh tonnes this year.

• The export of 10 lakh tonnes of sugar is still ongoing.

• Sugar production in Maharashtra and Karnataka is nearing completion.

Mill Delivery Prices

During the week of March 15-21:

• Eastern Uttar Pradesh: Prices increased by ₹90 to ₹3,970-4,190 per quintal.

• Punjab & Madhya Pradesh: Prices improved by ₹10-20 per quintal.

• Bihar & Gujarat: Prices softened by ₹11 per quintal.

• Traders and millers consider these fluctuations as normal market movement.

Spot Market Prices

• Delhi: Stable at ₹4,300-4,400 per quintal.

• Indore (Madhya Pradesh): Dropped by ₹10 to ₹4,170-4,270 per quintal.

• Naka Port Delivery Price: Remained steady at ₹3,880-4,080 per quintal.

• Kolkata: Increased by ₹40-60 per quintal due to some trading activity.

Tenders & Production Outlook

• Maharashtra & Karnataka: Tender prices softened slightly but may improve soon.

• Jaggery production is nearing its end.

• Sugarcane supply to mills is declining, and crushing operations may conclude soon.

• The Indian Sugar Mills Association (ISMA) estimates domestic sugar production for the 2024-25 marketing season at 264 lakh tonnes, reflecting a significant decline.

With these trends, sugar prices are expected to remain steady with potential for slight upward movement in the coming weeks.