Sugar prices on Tuesday rose to Rs 4,250 per quintal at the wholesale market on increased buying for the current festival and marriage season amid widening demand-supply gap.
The sweetener, which is already trading double to Rs 41 per kg in retail market over the last one-year, is likely to scale more heights as demand for the commodity rose sharply during the last fortnight among bakers and hoteliers for major events like Christmas and New Year, marketmen said.
They said the demand for the ongoing marriage season and approaching festival of 'Makar Sakranti' might further boost the buying activity in the face of tight supply.
As per the Consumer Affairs Ministry data sugar prices has gone up to Rs 41 in the local market here due to demand-supply gap.
Traders at the Delhi wholesale market said the sweetener might become more costlier as it has risen to Rs 4150-4250 per quintal in the in bulk trading against Rs 3,590-3,700 per quintal on December 19.
They said there is restricted supply from mills on fall in production, while bulk users like soft drink manufacturers and retailers have placed more orders.
Sugar medium and small grade prices jumped further by Rs 100 each to Rs 4,150-4,250 and Rs 4,140-4,240 a quintal respectively. It had gained Rs 200 in previous session.
