New Delhi: Sugar production is increasing rapidly due to vigorous sugarcane crushing, but weak domestic demand is preventing millers from selling their produce at higher prices. The outstanding dues owed to sugarcane farmers by the mills are increasing, putting immense pressure on millers to make payments as quickly as possible. As a result, units are being forced to sell their stock at lower prices, even below the cost of production.

During the week of December 20-26, sugar tender prices in Maharashtra fell by up to Rs. 90 to Rs. 3610/3725 per quintal, and in Karnataka, they dropped by up to Rs. 95 to Rs. 3605/3700 ​​per quintal, while the cost of production there is estimated at Rs. 3900/4000 per quintal. In light of this, the domestic industry is strongly demanding that the central government implement the necessary increase in the minimum selling price (MSP) of sugar ex-factory as soon as possible. This year, Maharashtra and Karnataka are witnessing excellent sugarcane yields, and mills are receiving a large supply of sugarcane, which they are obligated to crush.

Meanwhile, the Central Food Ministry has fixed a free sale quota of 22 lakh tonnes of sugar for January 2026, which is expected to be sufficient to meet demand and consumption. Consequently, a significant increase in sugar prices in the coming days seems unlikely.

Although the government has allocated an export quota of 15 lakh tonnes of sugar for the entire marketing season, it is considered quite small compared to the production and stock levels.

During the week under review, mill delivery prices of sugar increased by Rs. 75 per quintal in Eastern Uttar Pradesh, but decreased by Rs. 70 in Madhya Pradesh, Rs. 75 in Western Uttar Pradesh, and Rs. 80 per quintal in Bihar. Prices also softened by Rs. 25-35 in Gujarat.

The spot market price of sugar in Delhi improved by ₹20 to ₹4400/4450 per quintal, remained unchanged in Indore, Kolkata, and Mumbai (Vashi), while it fell by ₹20 in Raipur to ₹3980/4050 per quintal. There was no change in the port delivery price.