NEW DELHI – Prices of medium-grade sugar rose by 20 rupees per 100 kg in wholesale markets of Kolhapur today because of demand from confectioners for the ongoing marriage season, traders said.

Prices were also up on expectations that crushing of sugarcane will be delayed by another fortnight, said Amar Patil of Indian Sugars Factory.

The office of the sugar commissioner has recommended that millers start crushing cane on Nov 25. So far, 89 mills have been issued licences to start crushing and 72 mills are waiting for permits.

"This time crushing is going to start late and will end early by March-end. Usually, crushing goes on till April-end… Around 80% sugar mills in Marathawada are likely to remain shut this season," Patil said.

In Maharashtra, output of sugar is expected to be 6.2 mln tn in 2019-20 (Oct-Sep) compared with 10.7 mln tn last year, according to Indian Sugar Mills Association.

In Delhi, prices of the sweetener fell marginally by 5 rupees per 100 kg.

Prices were flat in the wholesale markets of Muzaffarnagar and Mumbai because supply balanced demand, traders said.

In the international market, contracts of sugar were trading marginally lower. At 1712 IST, the March contract for raw sugar on the ICE Futures US was at 12.58 cents a pound, down 0.1% from Tuesday's close.

Mills in Brazil's centre-south region produced 1.51 mln tn of sugar during Oct 16-31, 57.8% higher from a year earlier, the country's sugarcane industry association UNICA said in a report.

"The market continues to be 'range-bound' in thin volume. We seem most likely to continue the sideways price action around 12.50 (cents per pound)… We all know it's inevitable the market will break out at some point, but we have little news of gravitas that could precipitate such price action," Sucden Financial said in a report.

Following are today's ex-mill prices of medium-grade sugar in rupees per 100 kg, at key wholesale markets, and the change from the previous close: