Prices of sugar softened in most parts of the country, while they were stable in western regions, even as demand for the sweetener was subdued on the back of rising stocks. Markets in the north had risen on excessive purchases following reports of likely rise in the minimum selling price by mills. In Kolkata, prices dropped 50 rupees to 3,470 rupees. In Delhi, too, prices were marginally lower at 3,350 rupees per 100 kg. prices were stable, with a bearish bias, as mills continued delivering sugar from last month’s quota. As production picks up pace, mills are facing pressure from rising stocks. India produced 11.05 mln tn of sugar in Oct-Dec, up nearly 7% on year. The output in Maharashtra was up at 4.4 mln tn during this period from 3.8 mln tn a year ago.

the benchmark market, prices of medium grade sugar were at around 3,150 rupees per 100 kg, almost unchanged. Sugar prices in Bengaluru were down 20 rupees from previous day at 3,300 rupees per 100 kg. attributing the lower prices in south India to higher output in Karnataka and Tamil Nadu.

sugar output in Tamil Nadu in Oct-Dec rose 45% to 140,000 tn, while in Karnataka, it was up 22% at 2.05 mln tn. the benchmark March raw sugar contract on ICE Futures US was up 2.5% at 12.23 cents per pound compared to previous close. The most-active March contract on Intercontinental Exchange was at 11.69 cents per pound, down 0.2% from the previous close.