New Delhi: Due to ample supply and subdued demand and off-take, the downward trend in mill delivery prices and spot market rates of sugar continued during the week of December 13-19. The severe cold in North India, the absence of any major festivals, and the increased use of jaggery are affecting both industrial and domestic demand for sugar. Millers are having to sell sugar regularly to clear their December quotas, while stockists and dealers are showing less interest in buying.

During the week under review, mill delivery prices of sugar declined by Rs. 10 per quintal in Eastern Uttar Pradesh and Bihar, Rs. 20 in Madhya Pradesh, and Rs. 70 in Punjab. Prices also fell by Rs. 40-45 per quintal in Gujarat. However, in Western Uttar Pradesh, it improved by Rs. 25 to reach Rs. 3830/4160.

The spot market price of sugar remained unchanged at Rs. 4390/4430 per quintal in Delhi, but fell by Rs. 25-50 to Rs. 4000/4075 per quintal in Indore and by Rs. 50 to Rs. 4000/4050 per quintal in Raipur.  In Kolkata, it softened by Rs. 25, bringing the price down to Rs. 4225/4400 per quintal.

In the Mumbai (Vashi) market, the price of sugar declined by Rs. 30 to Rs. 3800/3940 per quintal, and the Naka port delivery price also fell by the same amount to Rs. 3750/3890 per quintal. Moreover, the tender price of sugar has also fallen to ₹3600/3775 per quintal in Maharashtra, a decrease of ₹60, and to ₹3600/3750 per quintal in Karnataka, a drop of ₹10, which is even below the cost of production.

The decline in sugar prices is causing significant difficulties for millers in Maharashtra and Karnataka in making timely payments to sugarcane farmers. The domestic industry is strongly demanding that the government increase the minimum ex-factory selling price of sugar, increase the sugar export quota, and allow the use of a larger quantity of sugar for ethanol production and export.