New Delhi: For the past few weeks, weak trading and abundant supply had kept sugar prices subdued, causing increasing concern among millers. The government's announced monthly free sale quota of 2.2 million tonnes of sugar for January was weighing heavily on the domestic market and putting pressure on prices. However, increased buying by buyers at lower levels led to a significant increase in mill delivery prices, spot market prices, and tender prices of sugar during the week of January 17-23.

During the week under review, mill delivery prices of sugar increased by Rs. 30 per quintal in Bihar, Rs. 50 in Madhya Pradesh, Rs. 75 in Eastern Uttar Pradesh, Rs. 80 in Punjab, and Rs. 80-100 per quintal in Gujarat. However, prices softened by Rs. 20 per quintal in Western Uttar Pradesh. Excessive stocks and weak industrial demand had kept sugar prices subdued during the first two weeks of the month.

During the week of January 17-23, the spot market price of sugar remained unchanged at Rs. 4350/4400 per quintal in Delhi, but increased by Rs. 40 to Rs. 4000/4070 per quintal in Indore, improved by Rs. 25-30 to Rs. 3980/4050 per quintal in Raipur, and jumped by Rs. 80 to Rs. 4200/4350 per quintal in Kolkata.

In the Mumbai (Vashi) market, sugar prices also jumped by Rs. 80-110 to Rs. 3800/4000 per quintal, and the Naka port delivery price also increased by the same amount, reaching Rs. 3750/3950 per quintal. Tender

The tender price of sugar surged by up to ₹70 in Maharashtra, reaching ₹3615/3800 per quintal, and increased by ₹20-40 in Karnataka, reaching ₹3650/3750 per quintal, but still remained below the cost of production.

Sugar mills will now need to quickly sell the remaining sugar stock from their January quota. The monthly quota for sugar for February is expected to be released in the coming days. Domestic sugar production is showing a healthy increase, and mills are accumulating larger stocks.