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Informist, Thursday, Nov. 27, 2025

 

--Govt: Dec sugar sales quota at 2.2 mln tn, unchanged from a year ago

--CONTEXT: Govt had set sugar sales quota for Nov at 2.0 mln tn 

 

MUMBAI – The government has set the domestic sugar sales quota for December at 2.2 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X. The quota for next month is 10% higher than 2.0 million tonnes in November and unchanged from December last year.

 

The government's sales quota for December is higher than the market's expectation of 2.0-2.15 million tonnes. Market participants had expected the quota to be unchanged with a slight upward bias from the previous month, even though demand is expected to be weak and availability ample as the crushing season is underway in full swing. Demand from bulk buyers is likely to remain subdued, market participants told Informist.

 

As there are no major festivals in December, there is less scope for bulk demand from confectioneries, traders said. Moreover, with temperatures dropping in the peak winter months, demand from ice-cream and cold-drink manufacturers is declining, said Naresh Gupta, a trader from north India. He had estimated the sugar sales quota for December at 2.1 million tonnes as demand is weak amid the availability of alternatives such as khandsari and jaggery.

 

"In Maharashtra, prices are seen at INR 3,700 per 100 kg during December, down by INR 50 per 100 kg from this month," Seemal Sidhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association, had said before the sugar sales quota was announced.

 

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. It also sets monthly sales quotas for each sugar mill. The government has estimated gross sugar production in the 2025-26 (Oct-Sept) sugar season at 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 Shreya Shetty

Edited by Avishek Dutta

 

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