NEW DELHI – Prices of medium-grade sugar in wholesale markets across the country were unchanged today from Wednesday because demand remained subdued ahead of the weekend and as Holi festival has come to an end, traders said.

Amid a glut in the market, sugar prices have been on a downfall for quite sometime now. High monthly sale quota of 2.45 mln tn fixed by the government has also made things worrisome for the sugar sector.

"Not even half of the sugar has been sold from the total quota fixed for March till now. Only a week is left for the month to end and a mere 1.0-1.1 mln tn is likely to have been lifted from mills until now," said a Kolhapur-based trader. 

Due to supply pressure in the market and low demand, some mills are selling sugar at 30 rupees a kg, a rupee lower than the government-mandated minimum selling price of 31 rupees.

However, the government on Wednesday asked states to ensure that mills do not sell sugar below the minimum selling price.

"…some sugar mills are selling white/refined sugar below MSP (minimum sale price) and some are selling sugar at MSP inclusive of GST (goods and services tax) which is against the directives of Government of India and is in violation of Sugar Price (Control) Order, 2018," said a food ministry's letter addressed to cane commissioners' of sugar producing states.

On ICE Futures US, the most active May contract of raw sugar was at 12.59 cents a pound, up 0.7% from the previous close. Prices rose as investors covered short positions after the contract had hit a one-week low of 12.45 cents a pound on Thursday.

A fall in sugar beet planting in the European Union for the next season may help reduce global sugar surplus, a media report said.

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: