Weekly Review - Sugar
19-Oct-2025 01:22 PM
Sugar prices fall due to weak demand
New Delhi. While sugar demand and prices typically increase during important festivals like Dussehra and Diwali, this time the situation appears to be the opposite. During the week of October 11-17, the plant delivery price and spot price of sugar fell by 20 to 50 rupees per quintal.
Quota
It appears that the 2.4 million tonnes of sugar free sale quota issued by the Food Ministry for the month of October has overwhelmed the market, putting pressure on prices. However, prices have previously risen significantly, and therefore, the recent softening is not unexpected. Buyers have already made significant purchases, anticipating further price increases.
Mill Delivery Prices
During the week under review, mill delivery prices of sugar declined sharply by ₹55 per quintal in Eastern Uttar Pradesh, ₹40 in Western Uttar Pradesh, ₹20 in Punjab, and ₹120 in Bihar. Prices remained stable in Madhya Pradesh. Gujarat declined by ₹10-₹20, and demand there also remained weak.
Spot Prices
Similarly, spot sugar prices declined by ₹50 to ₹4330/4500 per quintal in Delhi, ₹30-₹40 in Indore, ₹4240/4300 in Kolkata, ₹80 to ₹4320/4400 per quintal, and ₹10 in the Mumbai (Vashi) market to ₹3950/4100 per quintal. Naka port delivery prices also declined by ₹10 to ₹3900/4050 per quintal.
Tender
Sugar tender prices also declined slightly. In Maharashtra, they fell by ₹10-20 to ₹3830/₹3890 per quintal, and in Karnataka, they fell by ₹10 to ₹3800/₹3930 per quintal. Mills attempted to sell their stock by reducing prices.
Sugarcane Crushing
The new marketing season for sugarcane crushing and sugar production officially began on October 1, 2025, but its pace is still slow in many states. In Maharashtra, sugarcane crushing has been approved to begin next month.