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Informist, Wednesday, Dec. 24, 2025

 

By Taniva Singha Roy

 

MUMBAI – The government is likely to keep the January sugar sales quota steady or increase it slightly from the previous month. Market participants told Informist that the sugar sales quota for next month will be 2.2-2.3 million tonnes, as demand is expected to improve due to festivals such as Makar Sankranti, Pongal and also the wedding season.

 

Prices of the sweetener are likely to be range-bound due to ample availability as the crushing season is in full swing. The government is expected to announce the January sugar sales quota over the next two days.

 

In January, there are more number of festivals, so the quota can be slightly higher, said trade sources. "The sales quota for January is expected to be between 2.2 million tonnes and 2.25 million tonnes. This is usually the quota set for January. Prices are likely to remain range-bound. They are already down by INR 100 per 100 kg from the peak levels," said Naresh Gupta, a trader from north India. 

 

Sugar sales quota for January is expected at 2.2 million tonnes, same as December, Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, said. "In January, bulk demand will come only during Makar Sankranti festival and Pongal, but availability is going to be ample as mills will try to liquidate stocks amid the ongoing crushing season," Kuvadia said. He said prices are likely to remain at the current levels and no upward movement is expected. 

 

Mills have to pay back sugarcane dues to farmers, so they will not hold back on stocks and sell as much as they can, hence prices are unlikely to increase, said G.K Sood, chairman of MEIR Commodities. "In Maharashtra prices are likely to be in the range of INR 3,600-INR 3,700 per 100 kg and in Uttar Pradesh prices will be around INR 4,100 per 100 kg," he said. Sood expects the sales quota for January between 2.2 million tonnes to 2.3 million tonnes.

 

The quota for January will be between 2.2 million tonnes to 2.25 million tonnes and this will be sufficient to meet the demand for the month, said Seemal Sudhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association. "Market will be stable in the range of INR 3,600-INR 3,650 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 has estimated gross sugar production for the sugar season 2025-26 (Oct–Sep) around 34 million tonnes. Indian mills produced 7.8 million tonnes of sugar between Oct. 1 and Dec. 15, up 28% from the year-ago period, the Indian Sugar & Bio-energy Manufacturers Association said in a press release Tuesday. A total of 478 mills were operational across the country as of Dec. 15, up from 477 a year ago, the association said.

 

According to the industry body, mills in Maharashtra--the top producer of sugar--produced 3.2 million tonnes of the commodity between Oct. 1 and Dec. 15, compared with 1.7 million tonnes a year ago. The output of mills in Uttar Pradesh, the second-largest sugar producer, was 2.5 million tonnes, up 6.6% from a year ago.  End

 

Edited by Vandana Hingorani

 

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