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Informist, Monday, Apr. 28, 2025

 

--Govt sets sugar sales quota for May at 2.35 mln tn vs 2.7 mln tn year ago 

--CONTEXT: Govt had set sugar sales quota for Apr at 2.35 mln tn 

 

MUMBAI – The Centre has set the domestic sugar sales quota for May at 2.35 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X Thursday. The quota for May is the same as last month, but down nearly 13% from 2.7 million tonnes in May last year.

 

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 sets monthly sales quotas for each sugar mill. A lower quota restricts mills from selling the sugar they have produced.

 

Market players were expecting the sales quota to be the same as the previous month, as demand has been muted and purchases have not been picking up as they usually do during the summer months. In May last year, the government had set the sugar sale quota at a record 2.70 million tonnes to check prices because of the severe heat waves and the General Elections. While mills have dispatched 29.0 million tonnes domestically in the 2023–24 sugar season (Oct-Sep), projections so far suggest domestic sales this year could dip to 28.0–28.5 million tonnes, MEIR Commodities Chairman G.K. Sood had told Informist earlier.   

 

The sugar sector is navigating complex market fundamentals this season--high inventories, a shortfall in production, and a slowdown in demand.

 

Mills in India have produced 25.5 million tonnes of sugar as of Apr. 15, accounting for 99.6% of the production estimate for 2024-25 (Oct-Sept), according to the Indian Sugar and Bio-Energy Manufacturers Association. The trade body has pegged the net sugar output for the current season at 26.4 million tonnes, after diversion of 3.5 million tonnes for making ethanol. Last year, the country's sugar output was 31.9 million tonnes.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

 

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