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Informist, Thursday, Jun. 26, 2025

 

--Govt sets July sugar sales quota at 2.2 mln tn vs 2.4 mln tn year ago 

--CONTEXT: Govt had set sugar sales quota for June at 2.3 mln tn 

 

NEW DELHI – The government has set the domestic sugar sales quota for July at 2.2 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X on Thursday. The quota for next month is down 4.3% from 2.3 million tonnes in June and 8.3% lower than 2.4 million tonnes in July last year.

 

The government's sales quota for July is in line with market expectation of 2.2-2.3 million tonnes. The sugar industry had expected lower sales quota with sales of the sweetener expected to slow down further as the market has entered a lean demand phase. Informist had reported on Wednesday that the government was likely to announce the July sugar sales quota on Thursday. 

 

Of the 2.3 million tonnes sales quota set for June, mills have over 150,000 tonnes remaining to be sold, according to market estimates. Several mills had requested the government to allow them to carry forward the unsold quota from June to July. However, the government has not permitted any extension of the unsold quota to next month. 

 

"Extension is neither fair nor equitas. It benefits speculators who chose not to sell, at the cost of those who complied with the government quota," G.K. Sood, chairman of MEIR Commodities, told Informist. "The person who did not sell took a business decision. They did not like the prices and decided not to sell. It is no calamity," Sood added, hoping the government does not grant mills' requests for a rollover.

 

Though quota deviations are not unusual, the government had expected the June allocation to be largely met as it was lower than last year's 2.55 million tonnes. Sugar demand has slowed down due to the early arrival of monsoon, fewer days of heatwaves, and sluggish offtake from bulk buyers. Typically, sugar demand from soft drink makers and ice cream manufacturers declines with the fall in temperatures.  End

 

Reported by Afra Abubacker

Edited by Tanima Banerjee

 

 

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