Weekly Review- Sugar
07-Jun-2025 01:44 PM
Sugar prices soften due to weak demand
New Delhi. The main season of sugarcane crushing and sugar production in the domestic sector has ended. From next month, a special session will be organized in Karnataka and Tamil Nadu which will continue till September.
Production / Quota
3.50-4.00 lakh tonnes of sugar can be produced in this season. The government has issued a quota of 23 lakh tonnes of sugar for domestic sale for the month of June, which is being considered normal.
Prices
Usually, the price of sugar rises a bit in response to the new free sale quota, but despite being a summer month, a softening of prices was seen during the first week of June, which clearly indicates that its industrial demand is weak. However, in most parts of the country, the heat continues due to the lack of rain and high temperature.
Mill Delivery Prices
During the week from 31st May to 6th June, the mill delivery price of sugar fell by Rs. 81 per quintal in Bihar, Rs. 80 in Punjab, Rs. 40 in Eastern Uttar Pradesh, Rs. 30 in Western Uttar Pradesh and Rs. 10 per quintal in Madhya Pradesh. In Gujarat too, the price remained soft by Rs. 20-30 per quintal, while severe heat is continuing there.
Spot Prices
Due to the soft mill delivery prices, the spot market price of sugar also fell. Its price fell by Rs. 50 to Rs. 4240/4340 per quintal in Delhi and by Rs. 50 to Rs. 4100/4200 per quintal in Indore. The spot market price of sugar in Raipur, Chhattisgarh fell by Rs. 15-20 to Rs. 4110/4200 per quintal and by Rs. 30 to Rs. 4250/4350 per quintal in Kolkata.
Mumbai
Sugar prices remained stable at Rs 3910/4110 per quintal in Mumbai (Vashi) market and Naka port delivery price also remained unchanged at Rs 3860/4060. But some improvement was recorded in the tender price of sugar in Maharashtra and Karnataka.