Weekly Review-Sugar
05-Apr-2025 06:38 PM
Limited fluctuations in sugar prices amid normal trading
New Delhi. Although there are indications of rapid increase in demand and consumption of sugar in cold drinks and ice cream manufacturing industry and domestic use is also happening normally, but limited fluctuations are being seen in prices due to better supply situation.
Mill Delivery Price
During the week from 29 March to 4 April, the mill delivery price of sugar improved by Rs 5 per quintal in eastern Uttar Pradesh and Rs 10 per quintal in Bihar, but fell by Rs 20 each in western Uttar Pradesh and Madhya Pradesh. A good increase in the price of sugar was recorded in Gujarat as the industrial demand there was better.
Spot Price
The spot market price of sugar remained intact at the previous level of Rs 4300/4400 per quintal in Delhi and there was no change in the previous level of Rs 4150/4225 per quintal in Raipur, but in Indore it improved by Rs 20 to Rs 4150/4250 per quintal.
Mumbai
Sugar prices remained stable at Rs 3950/4150 per quintal in Mumbai (Vashi) market and its Naka port delivery price also remained at the previous level of Rs 3900/4100 per quintal. In fact, there has been almost a halt in the export of sugar, which has curbed the rise in prices.
Export
It is known that in January, the government had allotted a quota of 10 lakh tonnes of sugar to the millers for export in the marketing season of 2024-25, but due to non-competitive price, India is facing difficulty in making export contracts and shipment of sugar. By the end of March, about 4 lakh tonnes of sugar could be shipped while the total contract is estimated to be 6 lakh tonnes.
Quota
During the month of April, a free sale quota of 23.50 lakh tonnes of sugar has been fixed for sale in the domestic division, which is 50 thousand tonnes more than the March quota of 23 lakh tonnes. However, considering the increasing heat, this quota is not considered to be huge. There was a slight decline in the price of sugar in the second half of March, but now the market has again reached normal levels.
Production
There is an estimate of a huge decline of 50-60 lakh tonnes in the domestic production of sugar, so there is no possibility of much pressure on the prices, but if an attempt is made to increase the prices arbitrarily, its demand may be affected. Fluctuations were seen in the tender price of sugar in Maharashtra and Karnataka.