New Delhi. Due to the new quota coming into effect, the availability of previous outstanding stock, weak demand from buyers and increased activity of monsoon, the mill delivery price and spot market price of sugar in the domestic sector either remained stable or recorded limited fluctuations during the week of July 5-11.

Due to the continuous rain in many states and the fall in temperature, the demand for sugar in the cold drinks and ice cream manufacturing industry has decreased. The same happened in June as well, in view of which the government has reduced the free sale quota of sugar to 2.2 lakh tonnes for the month of July. There is no festive or Lagnasara demand right now.

During the week under review, the mill delivery price of sugar increased by Rs 35 per quintal in eastern Uttar Pradesh and Rs 20 per quintal in western Uttar Pradesh and it also improved by Rs 5 in Madhya Pradesh, but a decline of Rs 20 per quintal was recorded in Punjab and Rs 15 per quintal in Bihar. Prices remained stable in Gujarat.

The spot market price of sugar fell by Rs 80 to Rs 4080/4280 per quintal in Delhi and by Rs 25 to Rs 4100/4200 per quintal in Raichur (Chhattisgarh), while it remained at the previous level of Rs 4100-4200 per quintal in Indore. In Mumbai (Vashi) market, it remained stuck at Rs 3880/4080 per quintal with a decline of Rs 10, while in Kolkata it remained at the previous level of Rs 4250/4350 per quintal. The Naka Port Delivery price of sugar fell by Rs 10 to Rs 3830/4030 per quintal.

The tender price of sugar in Maharashtra saw an improvement of Rs 25-35 per quintal, while in Karnataka, fluctuations of Rs 20-40 per quintal were recorded.

The export performance of sugar is weak and the demand in the domestic market is also sluggish, which is not creating an environment for a huge increase in prices. Domestic sugar production is expected to decline by 17-18 percent to 260-261 lakh tonnes during the 2024-25 season as compared to the 2023-24 season, but still the market remains calm to a large extent. It is also doubtful that there will be much increase in the remaining days of July.

This time the area of ​​sugar cane may increase slightly from last year and if the monsoon and weather conditions remain favorable, then it can have a good yield. This is expected to lead to better sugar production. Some organizations have estimated the gross production of sugar to increase to 350 lakh tonnes in the 2025-26 marketing season, but for this it is necessary to have good rains in the major sugarcane producing areas.