Sugar prices up 6-7% in June amid below-normal rainfall

Pune: Sugar prices have risen 6-7% over June as below-normal rainfall last month raised concerns over crop output. Demand, meanwhile, climbed with the end of the Hindu month of Adhik Maas, when festive consumption is typically subdued, industry experts said.

Ex-mill sugar prices in Maharashtra, India's largest producer of the natural sweetener, have increased to about ₹41.5 per kg from ₹38.5 per kg a month ago, data from mills in the region showed.

Average sugar tendering prices of mills from the benchmark Kolhapur market show an increase of more than 7% between June 7 and July 7-to ₹4,120 a quintal from ₹3,835 per quintal Retail prices typically track ex-mill price trends.


The recent spell of widespread rainfall is expected to provide relief to the standing sugarcane crop, which had come under stress due to prolonged heat and deficient rains earlier in the season.

"Concerns about the standing crop had increased in June due to delayed and deficient monsoon," said Abhijit Ghorpade, a sugar broker from Kolhapur. "The festival season demand has increased after the Adhik Maas got over."

Export Curbs

Worried about supply concerns during the festival season and the impact of El Nino on next year's sugar production, the central government has banned sugar exports in May.