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Informist, Tuesday, Feb. 24, 2026

 

By Taniva Singha Roy

 

MUMBAI – The Centre is likely to set the sugar sales quota for March between 2.30 million and 2.35 million tonnes, up from February's quota of 2.25 million tonnes, as demand from cold-drink and ice-cream manufacturers is expected to rise with the weather getting warmer, market participants said. March also has more days than February, which is why the quota for March is always higher, they said.

 

The quota for March 2025 was 2.30 million tonnes. The government is expected to announce the March sugar sales quota in the next two days.

 

"There will be good demand after the Holi festival from households and then for the rest of the month confectioners and ice-cream producers will stock up on the sweetener," Naresh Gupta, a trader from north India, said. Factors such as warmer weather and lower availability of alternatives such as khandsari will support demand for sugar, traders said.

 

The sales quota set by the government for February was 2.3% higher than the quota for January but unchanged from February 2025. Most mills have exhausted their stocks and met the quota, Gupta said. In March, too, traders believe mills will be able to meet the quota and exhaust stocks on time with demand expected to be firm.

 

Gupta expects the quota for March to be between 2.30 million and 2.35 million tonnes. He said a figure in this range would suffice to meet the expected demand. On prices, he said there would be a rise of INR 10-INR 20 per 100 kg in the first half of the month. "Though the quantity is sufficient, there will be an uptick in prices in the first half of the month as mills will not be in a hurry to meet the sales quota," he explained. Thereafter, prices would remain range-bound for the rest of the month, he added.

 

G.K. Sood, chairman of MEIR Commodities, too, expects the sales quota for March to be in this range. "Higher number of days in the month, demand from bulk consumers of sugar, and decreased availability of jaggery and khandsari will increase demand for sugar," Sood said. "On the flip side, transport disruption during Holi and traders clearing their stocks and squaring their accounts in March will lead to demand falling."

 

Availability of jaggery and khandsari usually falls in March as sugarcane arrivals slow down and most of the sugarcane is sent to mills for sugar production.

 

At the beginning of the month, availability of trucks for deliveries in north India falls as Holi is more than a one-day affair there, Sood said. Weddings do not take place around this time, so sugar demand for wedding festivities will also be limited. But in the latter part of the month, he said, demand is seen firming up with summer approaching.

 

On prices of the sweetener, Sood said there will be hardly any change and prices are likely to remain range-bound even if demand increases. This is because, if mills exhaust their quota, they will sell beyond the limit to meet the demand. Crushing of sugarcane is still going on, so there will be no problem with availability of sugar, he added. 

 

Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, also said the sales quota for March will be around 2.35 million tonnes, nearly the same as last year. Prices will remain steady with minor fluctuations of INR 10-INR 20 per 100 kg, he 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. For the sugar year ending September, the Indian Sugar & Bio-Energy Manufacturers Association has estimated gross production to rise 16% to 34.35 million tonnes. The association said it will release its third advance estimate for sugar production for the year soon.  End

 

Edited by Rajeev Pai

 

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