New Delhi. Most of the states of the country are facing severe heat, due to which industrial demand and consumption of sugar is increasing, but domestic demand is relatively low. The free sale quota of sugar is considered sufficient to meet the domestic demand. Free sale quota for the month of May will be announced next week. During the week from 19 to 25 April, the mill delivery price of sugar generally remained somewhat high, but stability or softness was seen in the spot market price. Tender price came down a bit in Maharashtra, while it improved slightly in Karnataka. The season of crushing of sugarcane and production of sugar has almost ended in both the states.

The spot market price of sugar improved by Rs 20 to Rs 4300/4400 per quintal in Delhi, but remained stable at the old level of Rs 4160/4260 per quintal in Indore and Rs 4160/4250 per quintal in Raipur. There was a decline of Rs 40 in Kolkata and Rs 20 in Mumbai (Vashi). There, the Naka Port Delivery Price also softened by Rs 20 to Rs 3900/4100 per quintal.

The tender price of sugar was recorded at Rs 3755/3875 per quintal in Maharashtra and Rs 3880/3980 per quintal in Karnataka. Sugar mills in all other states except Uttar Pradesh have either closed or are going to close soon. Compared to the last season, the domestic production stock of sugar will decrease significantly this time. Due to this, it will be difficult for prices to soften much.

When the monthly free sale quota is released, it will be possible to predict the future scenario of the sugar market. Last year, due to the general elections, the free sale quota for May was increased considerably. There is severe heat in May-June, due to which the consumption of sugar will increase in the manufacture of cold drinks and ice cream etc. The pressure of jaggery is decreasing. The total export of sugar is estimated to be stuck at 6-7 lakh tons against the fixed quota of 10 lakh tons.