Sugar prices fell further in the wholesale markets of Delhi and Mumbai as mills were liquidating inventories ahead of the month end. Sugar prices fell by about 20 rupees per 100 kg in Delhi, and by 10 rupees in Mumbai, but were unchanged in Muzaffarnagar and Kolhapur. Simbhaoli and a few more mills in Uttar Pradesh still had some unsold sugar from the January quota, which they were selling in the market. Demand was thin ahead of the weekend, but is likely to pick up from previous day, as wholesalers start re-stocking for retail demand, which usually spikes at the start of the month as households stock up on groceries after pay-day.

Demand from wholesale traders is likely to pick up from next week, also as the market is betting on a smaller sale quota for February. the government had capped overall sugar sales at 1.85 mln ton, lower than December’s 1.95 mln ton, with an aim to limit supply in the market and push up prices. Since February is a short month, traders expect the quota to be marginally smaller. India, export would remain unviable unless global raw sugar prices rise to over 13.50 cents a pound.

The arrival of sugarcane in sugar mill has accelerated in the last three-four days. In such a situation, farmers have to wait for the weeding of sugarcane. To avoid this, the farmers of the district are demanding to increase the capacity of the crushing machine in the Sugar Mill. Farmers who arrived with sugarcane in the mill say that the speed of the machine is slow, so that farmers have to wait till the next day for the production of sugarcane. In the international market, sugar again slipped below 13 cents a pound amid lack of strong fundamental support. the front month raw sugar contract was at 12.76 cents a pound, down 1.7% from the previous close.