Sugar prices today rose to Rs 4,250 per quintal at the wholesale market on increased buying for the current festival and marriage season amid widening demand-supply gap.
The sweetner, which is already trading double to Rs 41 per kg in retail market over the last one-year, is likely to scale more heights as demand for the commodity rose sharply during the last fortnight among bakers and hoteliers for major events like Christmas and New Year, marketmen said.
They said the demand for the ongoing marriage season and approaching festival of 'Makar Sakranti' might further boost the buying activity in the face of tight supply.
As per the Consumer Affairs Ministry data sugar prices has gone up to Rs 41 in the local market here due to demand-supply gap.
Traders at the Delhi wholesale market said the sweetner might become more costlier as it has risen to Rs 4150-4250 per quintal in the in bulk trading against Rs 3,590-3,700 per quintal on December 19.
They said there is restricted supply from mills on fall in production, while bulk users like softdrink manufacturers and retailers have placed more orders.
Sugar medium and small grade prices jumped further by Rs 100 each to Rs 4,150-4,250 and Rs 4,140-4,240 a quintal respectively. It had gained Rs 200 in previous session.
Similarly, the sugar mill-gate prices, at which the companies sell from factories without duty, also rose in the range of Rs 100 to Rs 70 per quintal.
The sugar from Kinoni and Mawana mills rose by Rs 80 and Rs 70 to Rs 4,000 and Rs 3,970 per quintal respectively. Dorala mills rate rose by Rs 100 to Rs 3,980 per quintal.
A senior official with a leading sugar firm said the rise in domestic price is in sync with global prices, which touched USD 718 (Rs 33,229) a tonne in London.
The continued restriction imposed by the Uttar Pradesh government on the movement of imported raw sugar also has a bearing on the recent spurt in sugar prices, he added.
Domestic sugar companies, which had contracted to import over five million tonne raw sugar till December 15, have gone slow on further contracts, even though the country needs another two million tonne to meet the demand-supply gap.
Sugar production from domestically grown sugarcane is pegged at 16 million tonne, while annual demand is 23 million tonne. The gap is being met through imports.
Mill delivery medium and second grade followed suit and edged up by the same margin at Rs 4,050-4,150 and Rs 4,040-4,140 per quintal.
Following are today's rates in Rs per quintal:
Sugar ready M-30 4,150-4,250 and S-30 4,140-4,240
Mill delivery M-30 4,050-4,150 and S-30 4,040-4,140.
Sugar mill gate prices (excluding duty): Kinonni 4,000,asmoli 3,910, mawana 3,970, titabi 3900,Thanabhavan 3,890, Budhana 3,890, Dorala 3,980.
