New Delhi. Domestic demand for sugar is not very strong and bulk buyers are buying it in limited quantities. The scope of monsoon rains has increased significantly and due to rains in different parts of the country and falling temperatures, the expected increase in the use of sugar in the manufacture of many other products including ice cream and cold drinks is not happening. As a result, a mixed trend was seen in the mill delivery price and spot market price of sugar during the week of 21-27 June.

The spot price of sugar improved by Rs 10 to Rs 4210/4310 per quintal in Delhi and increased by Rs 20 to Rs 4100/4200 per quintal in Indore, but decreased by Rs 25-50 to Rs 4075/4150 per quintal in Raipur. The price in Mumbai (Vashi) market increased by Rs 20 to Rs 3890/4090 per quintal and the Naka Port delivery price also increased by the same amount to Rs 3840/4040 per quintal. There was an increase of Rs 20 in Kolkata.

The tender price of sugar improved by Rs 10 to Rs 3720/3960 per quintal in Maharashtra and improved by Rs 5-10 to Rs 3775/3890 per quintal in Karnataka.

The central government has fixed a quota of 22 lakh tonnes of sugar for domestic sales for the month of July, but its impact on the market will be visible in the coming days. This quantity is less than the quota of 23 lakh tonnes for June and 24 lakh tonnes for July 2024. At the end of June, the industry may have an unsold stock of 1.50 lakh tonnes of sugar. This is also likely to affect the market. Sugar exports are happening at a slow pace. The domestic market price may continue to move within a certain range in the future as well.