More Stories

Informist, Tuesday, May 26, 2026

 

By Taniva Singha Roy

 

MUMBAI – The Centre is likely to set the sugar sales quota for June between 2.25 million tonnes and 2.3 million tonnes, similar to or slightly higher than the quota for May, market participants told Informist. If the sales quota is on expected lines, it will be sufficient as demand will be slightly lower due to the onset of monsoon next month, they said.

 

The government is likely to announce the sales quota for June in the next one or two days.  

 

The sales quota for May was 2.25 million tonnes, 2.2% lower than April's 2.30 million tonnes and 4.3?low the 2.35 million tonnes allocated in May 2025. As May was a peak summer month, there was demand from bulk sugar consumers, such as ice-cream and soft drink manufacturers. There was also demand from rural India, as marriages take place there during the harvest period. "The allocated quantity was not sufficient to meet demand, so mills sold beyond the quota," G.K. Sood, chairman of MEIR Commodities India Ltd., said.  

 

Mukesh Kuvadia, secretary of the Bombay Sugar Merchants Association, expects the sales quota for June to be 2.25 million tonnes, the same as in May. "The quota will be sufficient to meet the demand during this month as there are no major festivals next month and temperatures are also likely to cool down," Kuvadia added.

 

Meanwhile, Sood expects the June quota to be 2.25 million to 2.3 million tonnes. "There will be out-of-quota sales even in June as demand will be firm," he said. Sood said the ban on sugar exports has already affected prices, which fell by INR 30–INR 40 per 100 kilograms after the announcement. But prices recovered by INR 60–70 per 100 kg after that and are expected to remain elevated for some time next month, traders said.

 

The monthly quota for June is seen to be between 2.25 million tonnes and 2.30 million tonnes, Naresh Gupta, a north India-based trader, said. If the quota is as expected, it will be comfortable to meet the demand as the monsoon will start in June and temperatures will cool down. Hence, demand from ice-cream and cold-beverage manufacturers will be somewhat lower than in May.

 

However, prices are likely to be range-bound, as there are also expectations that the monsoon will arrive late or be patchy due to El Nio, which will leave the country warmer for longer. "There could be an increase of INR 20–INR 30 per 100 kg at the start of the month due to household demand," Gupta added. Currently, prices in the country's key markets are around INR 3,945-INR 4,160 per 100 kg, traders said.

 

Gupta said that El Nio could affect crops and cause a supply crunch, which could support prices. The upcoming El Nio is expected to affect both rainfall and temperatures across Maharashtra, with the risk to crops from above-normal temperatures higher than that from lower rainfall. 

 

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 Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.