Sugar prices have shot up across major markets in the country owing to summer and festival demands. The country has celebrated Eid and Chaitra Navami, traditionally sugar demand goes up during this month catering to festive demand. The prices have increased by almost Rs. 100 per quintal in the last two sessions across major markets.
Sugar prices in Central U.P. (M-Grade) are between Rs 3890 to 3900 per quintal, and in Western Maharashtra (S-Grade), the sugar prices are around Rs 3500 to 3550 per quintal.
The Government has allowed sugar mills to sell around 25 lakh tons of sugar as the monthly sales quota in April 2024, as against 22 lakh tons allowed by the Government in April 2023. Later the Government allowed an additional quantity of 2 lakh tons to sugar mills to sell sugar in that month to cater to high demand.
Recently, ChiniMandi wrote an article on the outlook of sugar prices post the crushing operations ending in the current season. Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars said that sugar prices may remain range-bound with a little upward bias on account of strong summer demand. He expects ex-mill sugar prices in West, South and North to increase by Rs 1 to 2 per kg.
Rahil Shaikh, MD of MEIR Commodities had stated that the financially weaker sugar mills in Solapur, Kolhapur and Northern Karnataka, which were selling sugar over the sale quota allocated to them to generate cash, have vanished, which could lead to an increase in sugar prices by Rs.2 per kg in Maharashtra in the post cane harvest season. Rahil Shaikh expects sugar prices in UP to be around Rs. 3800 to 3900 per qntl.
If the sugar prices continue their upward journey in the markets, the Government might allow sugar mills to sell some additional quantities of sugar in the market to quell prices. The Government had last year stepped in with a similar measure and infused an additional 2 lakh tons of sugar in the market.
