New Delhi: After remaining stable or soft for an extended period, a significant increase was recorded in both spot prices and mill delivery rates for sugar during the week spanning April 25 to May 1; tender prices also moved higher. The government has fixed a 'free sale' quota of 2.25 million tonnes (22.50 lakh tonnes) for the month of May, a move being viewed favorably by the market. Although this quota officially came into effect on May 1, the industry and trade sectors had received prior intimation regarding it 3–4 days in advance.

During the week under review, mill delivery prices for sugar witnessed an upward trend: rising by ₹75 per quintal in Eastern Uttar Pradesh, ₹60 in Western Uttar Pradesh, ₹80 in Punjab, ₹35 in Madhya Pradesh, ₹90 in Bihar, and ₹30–35 per quintal in Gujarat. This surge is currently a direct consequence of the reduced quota; however, in the near future, sugar prices will depend on the dynamics of demand and supply.

As far as the spot market is concerned, sugar prices in Delhi remained stable at their previous levels of ₹4,350–₹4,450 per quintal. Conversely, prices rose by ₹50 in Indore to reach ₹4,200–₹4,300 per quintal; by ₹75 in Raipur to reach ₹4,125–₹4,200 per quintal; and surged by ₹150 in Kolkata to touch ₹4,350–₹4,425 per quintal.

In Mumbai (Vashi Market), sugar prices firmed up by ₹20 to reach ₹3,890–₹4,090 per quintal, while the Naka Port delivery rate also saw an increase of ₹20, reaching ₹3,840–₹4,040 per quintal.

In Maharashtra, sugar tender prices witnessed an increase ranging from ₹40 to ₹60 per quintal. This provided some relief to the millers. Production

The sugar production season has nearly come to an end. Compared to last year, production has increased by 7 percent this time.