Prices of medium grade sugar fell today in the wholesale markets of north India as mills sold at lower rates in order to complete their unsold quota for August, traders said.

Sugar prices were down by 10 rupees per 100 kg in Muzaffarnagar, and by 5 rupees in Delhi.

"Refined sugar fell by 10-15 rupees (per 100 kg) and non-refined by 10 rupees in western Uttar Pradesh because of uncertainty in the market…Prices are unlikely to see a substantial rise even next month as demand will be on the lower side because of start of Pitru Paksha," said Ashish Kapoor, a Muzaffarnagar-based trader.

Pitru Paksha starts on Sep 13 and will end on Sep 28. Typically, consumption of sugar falls during this time.

Market participants expect the government to set a lower sale quota for mills' even in September as it wants the industry to become self-dependant and stop demanding for support from the government. A higher monthly sale quota leads to a fall in sugar prices. 

The Centre has set the August sugar sale quota at 1.9 mln tn, lower than 2.05 mln tn set for July.

However, prices were unchanged in Mumbai and Kolhapur today.

"Millers are maintaining the price in west India because demand is stable right now and supply also is normal," said an official with Bombay Sugar Merchants' Association.

At 1843 IST, the most-active October raw sugar contract on ICE Futures US was at 11.51 cents per pound, down 0.6% from the previous close.

International prices were down as investors booked profits after prices hit a one-week high of 11.65 cents per pound in early trade today.

"The report (Brazilian sugarcane industry's report) is expected to show an increased sugar mix…the highest so far in this year's campaign. The macro-environment has not been that helpful with a stronger dollar bias and weaker Brazilian Real," Sucden Financial said in a report.

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: