A firm tendency developed at the wholesale sugar market in the national capital during the week as sugar prices rose by up to Rs 130 a quintal on strong demand from stockists and bulk consumers amid a pause in supplies from mills.
Marketmen said prices commenced on a dull note due to record production as well as depressed demand, but recovered after the government's decision to raise ethanol price for blending in petrol by 25 percent.
The government on Wednesday approved an over 25 percent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol to cut surplus sugar production and reduce oil imports.
After the decision, a strong demand emerged from stockists and bulk consumers such as soft-drink and ice-cream makers, which caused the upturn in sweetener prices, they added.
A pause in supplies from mills on the hope of a further rise in prices also supported the uptrend, they added.
Before this measure, prices were faltering due to record production of about 32 million tonnes in the 2017-18 season (October-September).
In price section, sugar ready M-30 and S-30 prices bounced by a hefty margin of Rs 130 each to finish the week at Rs 3,400-3,600 and Rs 3,390-3,590 a quintal, respectively.
Mill delivery M-30 and S-30 prices also climbed up by Rs 85 each to conclude the week at Rs 3,150-3,330 and Rs 3,140-3,320 a quintal, respectively.
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