Average sugar prices in Kolhapur jumped by INR 50 per quintal during the first week of April. The sugar market has witnessed an improvement in demand with the approaching summer season.

Although the government has restricted sugar exports, but with the surplus sugar availability in the country, the government has allowed sugar exports to Maldives of around 64,500 tonnes earlier this month to ease the pressure on the prices.

Also, the government may allow additional diversion of sugar to ethanol production as the quantity of ethanol lying with the mills is equivalent to 8 LT of sugar. Therefore, a total of 25LT of sugar may be diverted to ethanol including 17 LT which is already allowed by the government for 2023-24 season.