Sugar prices are expected to improve slightly due to Lagnasara demand

11-Feb-2026 05:58 PM

New Delhi. Sugar production and stocks are increasing significantly due to the continued vigorous crushing of sugarcane. The government's normal free sale quota has kept sugar prices relatively low.

The February domestic sales quota of 2.25 million tonnes could have significantly pressured sugar prices, as the month has only 28 days, three days fewer than January or March. However, the Lagnasara and auspicious festivals are currently underway, and temperatures are rising. This indicates a revival of domestic and industrial demand for sugar.

Due to extremely cold weather and improved jaggery production in December and January, sugar demand remained weak, and therefore, ex-factory prices and spot market prices did not see much increase.

While ex-factory selling prices fell below cost in leading producing states like Maharashtra and Karnataka, prices remained relatively high in states like Uttar Pradesh, Bihar, Gujarat, Madhya Pradesh, and Punjab.

Sugar demand is expected to remain strong through the festive season and Holi, after which the summer season will begin to peak. Sugar demand and consumption tend to increase during the summer, while production begins to decline rapidly after March. Sugar prices can be expected to remain largely stable or somewhat firm in the coming period.