No scope for much increase in sugar prices

23-Jun-2025 08:36 PM

Mumbai. The conditions in the domestic market are not yet fully conducive for sugar consumption. The season of marriages and auspicious festivals has ended, and there are no major festivals before August.

With the onset of the southwest monsoon rains, the heat of summer has started to decrease, leading to relatively weak industrial demand. The export performance of sugar is also not satisfactory.

The industry currently holds a good stock of sugar, and its monthly quota for sale in the domestic market is being released at a normal level. Due to a near balance between demand and supply, only normal fluctuations are being seen in sugar prices.

There is no possibility of a significant increase in prices by next week. Meanwhile, the free sale quota of sugar for the month of July will also be announced soon, and all eyes are on it.

From next month, a special session of sugarcane crushing will begin in the sugar mills of southern Karnataka and Tamil Nadu. This session is expected to continue more or less until September.

From October, the new sugarcane crushing and sugar production marketing season (2025–26) will formally begin across the country.

If there is good monsoon rainfall during July and August, the production of sugarcane and sugar may increase in the next season, improving supply and availability.

At the end of the current marketing season, i.e., on 30 September 2025, the industry is expected to have an outstanding surplus stock of about 45–50 lakh tonnes of sugar.

This stock may be sufficient to meet domestic demand during the peak festive season of October–November. This time, sugar mills may also start crushing sugarcane relatively early.