Weekly Review - Sugar
10-May-2025 07:57 PM
Sugar prices mixed according to demand and supply
New Delhi. For the month of May, a general free sale quota of 23.50 lakh tonnes of sugar has been issued, which is equal to the quota fixed for April. There is intense heat in May and hence the industrial demand for sugar increases. The use of sugar increases significantly in the manufacture of soft drinks and ice cream etc. During the week of May 3 to 9, the price of sugar increased at some places and softened at others according to demand and supply.
Mill Delivery Price
Mill delivery price decreased in Uttar Pradesh while it improved slightly in Punjab and Madhya Pradesh. It remained stable in Bihar but in Gujarat it increased by 10-20 rupees per quintal. The season of crushing of sugarcane and production of sugar is almost over and by the end of April 2025, its domestic production declined by about 18 percent.
Spot Price
Spot market price of sugar declined by Rs. 50 to Rs. 4300/4400 per quintal in Delhi and Rs. 30 to Rs. 4170/4270 per quintal in Indore during the week under review. It remained stable at the previous level of Rs. 4125/4200 per quintal in Raipur but slipped by Rs. 10 to Rs. 3950/4150 per quintal in Mumbai (Vashi) market. There, Naka Port Delivery price also declined by Rs. 10 to Rs. 3900/4100 per quintal. Spot price of sugar remained strong by Rs. 20-30 in Kolkata.
Tender
A sharp decline was observed in the tender price of sugar. It declined by Rs. 125 to Rs. 3765-3890 per quintal in Maharashtra and by Rs. 20 to Rs. 3765/3845 per quintal in Karnataka. The Fair and Remunerative Price (FRP) of sugarcane has been increased by Rs 15 per quintal, which will increase the cost expenditure in the next marketing season (October - 2025- September - 2026). ISMA has urged the government to increase the ex-factory minimum selling price (MSP) of sugar in proportion to this. The MSP of sugar has not been changed for a long time.