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Informist, Tuesday, Oct. 28, 2025

 

--Govt: Nov sugar sales quota at 2.0 mln tn vs 2.2 mln tn last year 

--CONTEXT: Govt had set sugar sales quota for Oct at 2.4 mln tn 

 

MUMBAI – The government has set the domestic sugar sales quota for November at 2.0 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X. The quota for next month is 16.7% lower than 2.4 million tonnes in October and down slightly over 9% from 2.2 million tonnes in November last year.

 

The government's sales quota for November is below market expectations of 2.2-2.25 million tonnes. The sugar industry had expected the quota to be lower than than the previous month owing to lower demand from institutional and bulk buyers. Demand from households is expected during the first week of November, after which demand will soften as most households stock up sugar at the start of the month, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association.

 

In October, the offtake from the quota was low due to sluggish demand despite the festival of Diwali. "Most mills are yet to meet the sales quota for the month (October) and there are chances that they will not be able to sell the entire quantity," said Naresh Gupta, a trader from north India.

 

Prices are likely to be on the downtrend irrespective of the quota due to sluggish demand, said Seemal Sudhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association. However, during the first week, prices could increase by INR 20 per 100 kg or so due to household demand, before falling back to current levels or even further, he said. "In Maharashtra, prices are seen at INR 3,500 per 100 kg during November and in Uttar Pradesh at INR 3,700 per 100 kg," Jain said.

 

The government fixes the maximum quantity of sugar available for sale every month to support prices and help mills clear the arrears of sugarcane farmers. The government also sets monthly sales quotas for each sugar mill. The government has estimated gross sugar production for the 2025-26 (Oct-Sept) sugar season at around 34 million tonnes. Based on the first round of discussions with states, this is a conservative estimate and may be revised slightly upwards once sugar crushing begins.  End

 

Reported by Taniva Singha Roy

Edited by Avishek Dutta

 

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