Advertisement AdvertisementAdvertisement AdvertisementThe rally is also expected to boost margins for sugar ‌producers such as Balrampur Chini, ⁠Dwarikesh Sugar, Shree Renuka Sugars and Dalmia Bharat Sugar, dealers said. Wholesale sugar prices in Kolhapur, a key trading hub in the western ⁠state of Maharashtra, have risen nearly 10.2% over the past month to a record 4,716 Indian rupees per 100 kg. "Demand has picked up ahead of the festival season, but mills ​are holding ​back supplies and releasing stocks gradually, expecting ​prices to climb further," said Ashok ‌Jain, president of the Bombay Sugar Merchants Association. India's sugar demand typically rises from August to November as the country celebrates major festivals such as Ganesh Chaturthi, Dussehra and Diwali, when consumption of traditional sweets and confectionery increases. Bulk consumers such as biscuit and confectionery makers ​and soft drink and beverage ‌companies are building inventories ahead of the festival season, buying sugar despite ​elevated prices to avoid shortages during the peak demand period, he said.