New Delhi. Sugarcane crushing is still going on vigorously in sugar mills across the country, and there are indications of a good increase in sugar production. The Central Food Ministry has released a free sale quota of 22.50 lakh tonnes of sugar for the month of February, which seems normal. The wedding season is underway, and temperatures are also rising. Industrial demand for sugar has started to pick up. Holi demand is also likely to gain momentum. There is sufficient stock of sugar in the country.

During the week of January 31st to February 6th, while sugar mill delivery prices declined by Rs. 10-10 per quintal in Eastern Uttar Pradesh and Bihar and by Rs. 60 per quintal in Madhya Pradesh, they improved by Rs. 10-10 per quintal in Western Uttar Pradesh and Gujarat. Prices remained stable in Punjab. It is noteworthy that the mill delivery price of sugar in the above states remains considerably higher than in Maharashtra and Karnataka.

The spot market price of sugar remained unchanged at the previous level of Rs. 4300/4475 per quintal in Delhi during the week under review, but it jumped by up to Rs. 80 to Rs. 4100/4200 per quintal in Indore and increased by up to Rs. 50 to Rs. 4125/4200 per quintal in Raipur. The price of sugar remained stable at Rs. 4200/4350 per quintal in Kolkata.

In the Mumbai (Vashi) market, with better trading activity, the spot price of sugar increased by Rs. 50 to Rs. 3870/4070 per quintal, and the Naka port delivery price also increased by Rs. 50 to Rs. 3820/4000 per quintal. This clearly indicates that demand for sugar has started to improve. The tender price also remained firm during the week, rising by ₹20-30 per quintal in Maharashtra and ₹25 per quintal in Karnataka. This provided some relief to the sugar mills.