Prices of sugar fell in the key wholesale markets of north India today because of increased pressure on mills to sell and also due to poor demand. Prices of medium-grade sugar fell by 5 rupees per 100 kg to 3,598 rupees in the key wholesale markets of Delhi and Muzaffarnagar, Uttar Pradesh. There is immense pressure on mills to clear cane arrears and quoting lower prices. In March, the Uttar Pradesh government has asked sugar mills in the state to ensure payment of arrears to sugarcane farmers by April 23. Even though the outlook for prices of sugar in the near term is bearish and traders expect demand to improve towards the end of April. It seems demand will pick up after Apr 25…right now, buyers are only making need-based purchases. Fall in prices of sugar in north India can also be attributed to likely higher output in Uttar Pradesh in 2016-17 (Oct-Sep). Mills across the state have produced 8.42 million tonne sugar compared with 6.75 million tonne a year ago.