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Informist, Monday, Jul. 28, 2025

 

--CONTEXT: Govt had set sugar sales quota for July at 2.2 mln tn 

--Govt sets Aug sugar sales quota at 2.25 mln tn vs 2.2 mln tn year ago 

 

MUMBAI – The government has set the domestic sugar sales quota for August at 2.25 million tonnes, the Department of Food and Public Distribution said in a post on social media platform X on Monday. The quota for next month is over 2% higher than 2.20 million tonnes each in July and August last year.

 

The government's sales quota for August is below the market expectation of 2.35-2.4 million tonnes. The sugar industry had expected a higher sales quota due to festivals lined up from August onwards, when demand typically peaks. Informist had reported on Wednesday that the government was likely to announce the July sugar sales quota on Monday. 

 

Due to a lower production outlook and falling demand, the sales quota was meagre in July, said Naresh Gupta, a trader from north India. However, the demand is expected to increase next month onwards ahead of the festivals, he said. Prices will be on an upward trend in August as rates have been lower for a very long time and also there will be firm demand for the sweetener from confectioners and other bulk buyers, traders said. Prices are likely to stay at higher levels for the next three months, traders 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. The government also sets monthly sales quotas for each sugar mill. Sugar production in the sugar year 2024-25 (Oct-Sept) is estimated to decline to 26.1-26.2 million tonnes from 31.9 million tonnes last year, according to the All India Sugar Trade Association.  End

 

Reported by Taniva Singha Roy

Edited by Saji George Titus

 

 

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