New Delhi: The industry and trade sectors had projected a domestic sales quota of 2.30–2.35 million tonnes for the month of May; however, the Ministry of Food allocated a quota of only 2.25 million tonnes. Consequently, market pressure eased significantly, and the downward trend in sugar prices was largely brought to a halt. During the week spanning May 2 to May 8, sugar prices—including mill delivery rates, spot market rates, and tender rates—either remained stable or recorded a slight upward movement. Historically, industrial consumption of sugar tends to increase during the month of May.

Sugar prices are expected to remain firm in the near future. Although the weather has not yet turned excessively hot, consumption in the production of cold drinks and ice cream is nevertheless on the rise. Due to the allocation of lower quotas, millers will not be compelled to offload their stocks in haste.