NEW DELHI – Prices of sugar remained steady in the key wholesale markets of Maharashtra today as mills waited for the government to announce sales quota for December, dealers said.
    The medium-grade variety of the sweetener was sold at 3,335 rupees per 100 kg in Mumbai and at 3,160 rupees in Kolhapur, largely unchanged from Wednesday.
    “There is no movement in prices as everyone is waiting for the quota announcement for next month. Once the government comes out with it, only then we will see some price action,” a local trader said.
    The government has imposed a cap on monthly sale of sugar by mills to regulate supply in the market and to prop up domestic prices. 
    For November, the government has restricted sugar sales by mills in the country at 2.2 mln tn.
    Additionally, during the month, “sugar mills having distilleries with ethanol production capacity which divert B-heavy molasses to produce ethanol and thereby sacrifice sugar, shall be eligible to sell additional quantity of sugar in addition to the quantity of white/refined sugar prescribed for domestic sale”, the government said.
    However, prices fell slightly in the key wholesale markets of north India due to subdued demand from bulk buyers, dealers said.
    On the Intercontinental Exchange, futures contracts of raw sugar were in the red today due to a fall in crude oil prices, analysts said.
    At 1748 IST, the most-active March contract on the bourse was down 0.7% at 12.75 cents per pound.
    Crude oil prices fell to an over 13-month low today on persistent worries of a glut and uncertainty over cut in production at the meeting between major oil producers next week.
    Lower oil prices will mean less demand for ethanol, a byproduct of sugarcane, leading producers to shift to sugar instead. Millers in key cane-producing countries like Brazil have a choice between producing sugar and ethanol.
    
    Following are today’s prices for medium-grade sugar, in rupees per 100 kg, in key wholesale markets, and the change from the previous close:

End

US$1 = 69.84 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT