Weekly Review - Sugar

Sugar prices firm up in some regions due to festive demand

New Delhi: During the week of October 24–30, mill-gate prices for sugar remained stable in Eastern Uttar Pradesh, Punjab, and Bihar. Prices softened by Rs 5 per quintal in Western Uttar Pradesh and by Rs 25 per quintal in Madhya Pradesh, while Gujarat witnessed a mixed trend. In all these regions, mill-gate prices for sugar remained above Rs 5,000 per quintal.

Spot Prices

In the spot market, sugar prices remained stable in Delhi and Indore. However, they surged by Rs 300 to reach Rs 5,500–5,600 per quintal in Raipur, climbed by up to Rs 675 to reach Rs 6,000–6,150 per quintal in Kolkata, and rose by Rs 200 to reach Rs 5,100–5,300 per quintal in Mumbai (Vashi).

Port Prices

Sugar prices for port delivery also increased by Rs 200, reaching Rs 5,050–5,250 per quintal. Some improvement was observed in sugar tender prices in Maharashtra and Karnataka.

Low Stocks

As the festive season demand enters its final phase, the lack of sufficient stock within the industry is likely to complicate the supply-demand balance.

Quota

The 'free-sale' quota for the month of November could have a positive impact on sugar prices. Sugar production for the month of October is estimated to be between 4 and 5 lakh tonnes.

Imports

Under the Tariff Rate Quota (TRQ) system, permission had been granted for the duty-free import of 10 lakh tonnes of raw sugar; however, only a very small quantity has been imported so far. Consequently, the deadline for these imports has been extended by two months.

Production

In the 2026-27 season, domestic sugar production is once again expected to fall short of demand and consumption, which will cause the supply situation to become progressively more complex after March-April 2027.