The situation arose in the wake of steep fall in sugar prices due to a glut in the market on record production.
The rising streak in sugar prices continued with prices bouncing further by up to Rs 340 per quintal at the wholesale market in the national capital during the week following frantic buying by stockists and bulk consumers amid thin supplies from mills after announcement of Rs 8,500 crore package for distressed and cash-starved sugar mills and farmers because of sugar glut in view of record production.
Marketmen said brisk buying by stockists and bulk consumers to meet ongoing summer demand amid a pause in supplies following notification of Rs 8,500 crore package by the government, raised the sweetener prices.
The government has notified the bailout package of Rs 8,500 crore, in which included minimum floor price of Rs 29 a kg, buffer stocks of 3 million tonnes and Rs 4,500 crore soft-loan to boost ethanol capacity.
This situation has been created due to sharp fall in sugar prices because of sugar glut in the market on record production.
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The production has touched an all-time high of 32 million tonnes so far in the 2017-18 season (October-September).
In price section, Sugar ready M-30 and S-30 zoomed by Rs 320 each to end the week at Rs 3,550-3,700 and Rs 3,540-3,690 per quintal.
Likewise, the mill delivery M-30 and S-30 shot up by Rs 310 each to finish the week at Rs 3,260-3,430 and Rs 3,250-3,420 per quintal, respectively.
Among mill gate section, The prominent gainer were the Khatuli, Budhana and Thanabhavan by climbing Rs 340 each to Rs 3,370, Rs 3,360 and Rs 3,370 followed by Dorala, Simbholi, Modinagar, Shamli and Malakpur jumped up by Rs 320 each to Rs 3,350, Rs 3,420, Rs 3,320, Rs 3,310 and Rs 3,320 per quintal, respectively.
Prices of Dhanora, Dhampur and Sakoti spurted by Rs 300 each to Rs 3,390, Rs 3,280 and Rs 3,300, while Kinnoni and Asmoli surged by Rs 280 each to Rs 3,430 and Rs 3,360 and Mawana gained by Rs 250 to Rs 3,290 per quintal.