THE uptrend in sugar prices may continue in the coming weeks and prices may rise by Rs 100-150 per quintal near-term due to restricted sale by the mills amid strong demand for festival and marriage seasons, said traders. Last week, sugar prices spurted nearly 12 per cent in spot markets as mills slashed sale following government orders.
Prices are likely to go up further as demand will pick up in the coming weeks. "Sugar prices may increase further by Rs 100-150 per quintal in the coming days," said Sudhir Bhalotia of SNB Enterprises. The imposition of cap on monthly sale changed the market sentiment, and traders and bulk consumers started buying to increase stockpiles in anticipation of further rise in prices, he said.
Earlier, everyone was making purchases to meet immediate requirement as prices were sagging.
"Sugar prices are set to rise further but in a limited range due to weak offerings by mills amid good seasonal demand. Ex-mill prices of sugar in UP may go up to Rs 3,550-3,650 per quintal," said Sushil Kumar, a local trader.