Weekly Review – Sugar

12-Apr-2025 07:21 PM

Sugar Prices Soften Amid Weak Demand

New Delhi: Despite rising temperatures and steady domestic and industrial consumption, sugar prices witnessed a slight decline during the week of April 5–11 due to reduced trading activity.

Mill Delivery Prices:
Prices dropped by Rs 35 in Eastern UP, Rs 20 in Western UP, and Rs 50 in Punjab. Rates remained stable in Madhya Pradesh at Rs 3980/4070 per quintal, while Bihar saw a minor increase of Rs 20, reaching Rs 4080/4100 per quintal.

Spot Prices:
Reflecting mill trends, spot prices also weakened. In Delhi, sugar fell by Rs 20 to Rs 4300/4380, and in Indore, it dropped Rs 25 to Rs 4125/4225 per quintal. Rates stayed steady in Raipur, Mumbai (Vashi), and Kolkata.

Port and Tender Prices:
No major changes were noted in Naka port delivery and tender prices, although Karnataka’s tender price rose by Rs 55–65.

Sales Quota:
The Union Food Ministry released a 23.50 lakh tonne free sale quota for April — up by 50,000 tonnes from March. With rising industrial demand and the jaggery season ending, this quota may still fall short of growing consumption needs.

Exports:
High domestic prices have slowed export momentum. So far, only 3 lakh tonnes have been exported out of the 10 lakh tonne quota. Domestic sugar production is projected to drop by 50–60 lakh tonnes in the 2024–25 season compared to 2023–24.

Sugar prices may stay range-bound in the near term with limited volatility.