India Sugar Market Update: Prices Stable to Weak Amid Sluggish Demand

India’s domestic sugar market showed a stable to weak trend on March 12, with prices remaining largely range-bound across major trading centres due to sluggish buying activity.

Market sources reported that despite lower monthly release quotas and expectations of reduced sugar production, weak demand has limited price movement in key spot markets.

Muzaffarnagar Prices Slip Slightly

In North India, M-grade sugar prices in Muzaffarnagar were quoted between $48.76 and $49.72 per quintal, reflecting a decline of about $0.12 per quintal compared with the previous trading session.

Traders said the market remained subdued as buyers showed limited interest, keeping prices under pressure despite tighter supply expectations.

Western Markets Show Range-Bound Trend

In western India, S-grade sugar prices in Kolhapur were reported between $44.72 and $45.08 per quintal, supported by moderate trade activity.

Overall, sugar markets across the country remained largely steady as mills and traders waited for clearer signals on demand and supply conditions.

Ex-Mill Sugar Prices in Major Producing States

Ex-mill sugar prices across key producing states were reported as follows (rates per quintal, excluding GST):

• Maharashtra: $44.72 – $44.96 (S/30), $45.93 – $46.17 (M/30)

• South Karnataka: $49.48 – $49.78 (S/30), $50.08 – $50.39 (M/30)

• Uttar Pradesh: $48.76 – $49.72 (M/30)

• Gujarat: $45.96 – $46.20 (S/30), $46.79 – $47.15 (M/30)

• Tamil Nadu: $47.49 – $50.08 (S/30), $48.44 – $50.08 (M/30)

• Madhya Pradesh: $47.13 – $47.73 (S/30), $48.01 – $48.61 (M/30)

• Punjab: $49.72 – $49.86 (M/30)

Destination-Wise Spot Sugar Prices

Spot market prices for M/30 grade sugar in major cities were recorded as:

• Delhi: $52.42 per quintal

• Kanpur: $52.67 per quintal

• Kolhapur: $48.33 per quintal

• Kolkata: $52.42 per quintal

• Muzaffarnagar: $51.41 per quintal

• Ahmedabad: $50.00 per quintal

• Bengaluru: $50.76 per quintal

• Chennai: $53.89 per quintal

Global Sugar Market Trends

In international markets, sugar prices remained relatively stable.

• London White Sugar #5 front-month contract: $415.70 per ton

• New York Sugar #11 front-month contract: 14.36 cents per pound

Meanwhile, corn futures traded around 448, while Chicago ethanol futures were reported at $1.86.

Currency and Market Indicators

The Indian rupee traded at 92.335 against the US dollar, while the USD/BRL exchange rate stood at 5.1720.

In energy markets, WTI crude oil was trading at $93.41 per barrel.

Indian equity markets closed lower, with Sensex falling 829.29 points to 76,034.42, while Nifty declined 227.70 points to close at 23,639.15.

Market participants expect sugar prices to remain range-bound in the near term unless demand improves or supply conditions change significantly.