NEW DELHI – Prices of medium grade sugar fell in most wholesale markets of the country today as crushing of cane by mills has picked up and fresh stocks of the sweetener are available, traders said.

Prices fell by 15 rupees per 100 kg in Muzaffarnagar. In Delhi, prices fell by 10 rupees per 100 kg while in Kolhapur, they declined by 20 rupees.

As of Wednesday, 104 mills in Uttar Pradesh have produced 958,000 tn of sugar in the ongoing season, 26% higher from last year, industry estimates showed.

Traders are awaiting the release of the government's monthly sale quota for December, due on Friday, for further cues.

"Those who feel the quota will be insufficient are not selling while those hoping for a higher quota are pushing supplies as it will lead to a fall in prices," said Naresh Gupta, a Delhi-based trader.

In Uttar Pradesh, sugar mills have asked the state government to roll back the quota of molasses reserved for manufacturers of country-made liquor as it is against the interest of farmers.

Mills are expected to sell molasses, a key by-product of the sugar industry, to distilleries at discounted prices. This affects their cash flow and reduces the stocks of molasses available for blending ethanol with petrol.

Molasses under the quota fetches lower prices for sugar mills, affecting their ability to make timely payments to farmers.

In Mumbai, prices were unchanged because of lack of fresh cues.

Prices on ICE Futures US were unavailable as the exchange was shut today on account of Thanksgiving Day.

The International Sugar Organisation has estimated 2019-20 global sugar production at 170.40 mln tn, down 5.48 mln tn from the previous year.

In Brazil, sugar production has surpassed expectations owing to higher availability of cane and elevated sugar content, a brokerage report said.

"A projected fall in output in India and Thailand seems the dominant supply feature of 2019/20…It has to be stressed that the harvest has just started there (in India) and a number of surprises are quite possible at later stages of the season," ISO 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: