More Stories

Informist, Thursday, Aug. 28, 2025

 

--Govt sets Sept sugar sales quota at 2.35 mln tn, unch from last year

--CONTEXT: Govt had set sugar sales quota for Aug at 2.25 mln tn

 

MUMBAI – The government has set the domestic sugar sales quota for September 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 next month is over 4% higher than 2.25 million tonnes for August and same as September last year.

 

The government's sales quota for September is above market expectations of 2.25-2.3 million tonnes. The sugar industry had expected the quota to be equivalent or slightly higher than the previous month as they expect firm demand only in the first half of the month. "Demand will improve due to Navratri festival, it is expected to last for only the first half of the month as traders will buy during that period," traders said.

 

In August, the offtake from quota was low as demand slowed down in the latter half of the month owing to torrential rains across the country. Prices are likely to remain on the downside as the quota is higher than expected. "If it is anything more than 2.3 million tonnes, prices will fall. A quota higher than 2.3 million tonnes will be required only in October, when there is Diwali and Dussehra," said Seemal Sudhir Jain, secretary of the Kolhapur Karad Sangli Sugar Merchants Association. Currently, ex-mill prices of sugar are in the range of INR 3,850-INR 3,900 per 100 kg.

 

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 2025-26 (Oct-Sept) is estimated to rise 18.3% on year to 34.9 million tonnes from 29.5 million tonnes in the current year, according to the All India Sugar Trade Association.  End

 

Reported by Taniva Singha Roy

Edited by Subhojit Sarkar

 

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. 2025. All rights reserved.