NEW DELHI – Prices of medium-grade sugar fell by 15 rupees per 100 kg in the wholesale markets of Delhi today because of weak demand ahead of the announcement of monthly sales quota by the government on Tuesday, traders said.

"Speculation is going on in the market…It is difficult to even guess what the quota could be because since last 5-7 months, when you expect less it is high and when you expect high, it comes out to be less," said Naresh Gupta, a Delhi-based dealer.

Sugar mills in the country are selling over and above the allotted quota. In November, mills across India sold 2.25 mln tn of the sweetener, against a quota of 2.05 mln tn, according to industry estimates.

For January as well, market participants expect 25% higher sale quota for Uttar Pradesh due to high carryover stocks and an expected rise in output.

On the crushing front, mills across the state have so far crushed 28.2 mln tn of cane to produce over 3 mln tn of the sweetener. During the same period last season, mills had crushed 26.16 mln tn cane to produce 2.82 mln tn sugar, according to industry estimates.

Going ahead, prices in west India are likely to pick up in the first week of January due to a rise in demand for household consumption, said an official with Bombay Sugar Merchants' Association.

On other hand, prices were flat in Muzaffarnagar, Mumbai, and Kolhapur today because of lack of fresh cues.

On ICE Futures US, the most-active contract fell marginally today as investors booked profits after prices hit a one-week high of 13.60 cents a pound on Friday. At 1724 IST, the most-active March contract was down 0.2% at 13.51 cents per pound.

"A very thin week… Or rather it was the absence of news," said Marex Spectron 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: