Weekly Review- Sugar
31-May-2025 08:34 PM
Sugar prices soften due to month-end sales and decrease in demand
New Delhi. Being the last week of May, sugar mills were forced to sell the remaining part of their freesale quota during 24-30 May, while despite being a summer month, industrial demand for sugar was seen to be weak. As a result, there was a general softening in the mill delivery price and spot market price.
Mill Delivery Price
During the week under review, the mill delivery price of sugar increased by Rs 50 in eastern Uttar Pradesh and Rs 10 per quintal in Punjab, but it decreased by Rs 40 in western Uttar Pradesh and Rs 15 in Madhya Pradesh. Prices remained stable at the previous level in Bihar. In Gujarat, the mill delivery price of sugar declined by Rs 10 to Rs 45 per quintal.
Spot price
The spot market price of sugar rose by Rs 30 to Rs 4290/4390 per quintal in Delhi but fell by Rs 20 to Rs 4150/4250 per quintal in Indore and by Rs 10-15 to Rs 4125/4200 per quintal in Raipur. The spot price of sugar in Kolkata also fell by Rs 20 to Rs 4280/4380 per quintal.
Mumbai
Sugar prices in Mumbai (Vashi) market fell by Rs 20 to Rs 3910/4110 per quintal and Naka port delivery price fell by Rs 20 to Rs 3860/4060 per quintal. Tender prices of sugar in Maharashtra and Karnataka also fell by Rs 20-30 per quintal.
Quota
The government had issued a free sale quota of 23.50 lakh tonnes of sugar for domestic sale for the month of May, which was equal to the quota of April. Before that, a quota of 23 lakh tonne each was fixed for February-March and a quota of 23 lakh tonne has been declared for June as well.
Monsoon
Due to the early arrival of monsoon and rains in many states and the decrease in temperature, the demand for ice cream and cold drinks has weakened, due to which the expected increase in sugar consumption could not happen. The export performance of sugar is also not satisfactory. Due to the decrease in production in Brazil, the global market price partially came out of the quagmire of softness last day but is still quite low.