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Informist, Friday, Apr. 24, 2026

 

By Taniva Singha Roy

 

MUMBAI - The Centre is likely to set the sugar sales quota for May between 2.30 million and 2.35 million tonnes, which is similar to or slightly higher than April's quota, as demand is going to be higher in May from bulk consumers of sugar such as cold beverage manufacturers due to the summer heat. The weddings happening in May are also likely to contribute to demand, market participants said. 

 

The quota for May 2025 was 2.35 million tonnes. The government is expected to announce the May sugar sales quota in the next two days.

 

Sweetener demand is going to be on the higher side during the next month, traders said. "Contrary to the popular narrative that sugar consumption is low, consumption is rising, but slowly, and in May consumption will be higher than the previous month at about 2.45 million tonnes, up from 2.4 million tonnes in April," said G.K. Sood, chairman of MEIR Commodities. But there has been a slow-down in consumption growth as the optimum level is reached, he said.

 

In May, there is going to be demand from bulk consumers of sugar such as ice-cream, soft drink and summer beverage manufacturers. There is also going to be demand from rural India as marriages happen there during the harvest period. Hence, the allocated quantity might not be sufficient to meet the demand next month, traders said. In that case, mills might resort to selling over and above the allocated quantity, Sood added. He expects prices to rise by INR 100 per 100 kg in the next month owing to firm demand.

 

The sales quota for May is likely to be in the range of 2.3 million tonnes to 2.35 million tonnes, said Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association. This is going to be more or less sufficient, Kuvadia said. Prices will rise by around INR 20 per 100 kg in May, he said.

 

Naresh Gupta, another trader, also expects the sales quota for May to be 2.3 million tonnes. "If the quota is around 2.3 million tonnes, prices are likely to be range-bound and if the quota is anything less than that, prices will rise by INR 30-INR 40 per 100 kg," Gupta added.

 

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 cut its estimate on gross sugar production in 2025-26 to 32.0 million from 32.4 million tonnes estimated earlier in February.  End

 

Edited by Akul Nishant Akhoury

 

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