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Informist, Wednesday, Mar. 25, 2026

 

By Taniva Singha Roy

 

MUMBAI – The Centre is likely to set the sugar sales quota for April between 2.30 million tonnes and 2.35 million tonnes, up from 2.25 million tonnes in March, market participants told Informist. Demand for the sweetener is seen higher in April than in March, especially from bulk buyers such as ice-cream and cold-drink manufacturers, as the temperature soars with progress of the summer season, they said.

 

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

 

The sales quota for March was 2.2% lower than the 2.30 million tonnes in the month a year ago but unchanged from February. Even though the quota for this month was considered to be lower initially, many mills were not seen achieving the sales quota as demand was subdued, particularly from hotels and eateries, due to shortage of liquefied petroleum gas amid the ongoing military conflict in West Asia, traders said.

 

The quota for April is expected to be higher than March but equal to or even slightly lower than that for April 2025 as firm seasonal demand from ice-cream manufacturers will be offset by subdued demand from households and restaurants and eateries, said Semal Sudhir Jain, secretary of Kolhapur Karad Sangli Sugar Merchants Association. "The quota for April is likely to be around 2.30 million tonnes slightly lower than last year as household demand is expected to be muted with people shifting to healthier alternative and also as there are limited number of festivals next month," Jain said. He said that demand will mostly come from institutional or bulk consumers owing to rising temperature.

 

North India-based trader Naresh Gupta said the monthly quota for April will be same as last year at 2.35 million tonnes. "It will be higher than March as summer season temperatures are peaking but not over 2.35 million tonnes as there are no festivals in April," Gupta said. The quota will be enough to meet demand during the month, he added.

 

Other experts and market participants also expect the quota to be in the same range. G.K. Sood, chairman of MEIR Commodities India Ltd., said the April quota is likely to be around 2.3 million tonnes, which is lower than last year. Due to shortage of fuel there has been low demand for the sweetener from the food processing industry. Hence, quota can be slightly lower on a yearly basis, Sood said. "About 105,000 tonnes sugar demand is lost due to LPG shortage so if last year 2.35 million tonnes was sufficient due to higher demand, this month 2.30 million tonnes will be enough," he said. The Bombay Sugar Merchants Association's Secretary Mukesh Kuvadia said the quota is likely to be 2.30 million tonnes to 2.35 million tonnes.

 

In April, market participants expect prices to be range-bound with an upward bias. "Prices will be slightly firm as the crushing operations will also end in March, so mills will not worry about excess availability," Sood said. Jain said that if the quota is around 2.30 million tonnes, prices will be move sideways but may rise when there is demand. Prices of the sweetener in Maharashtra will be around INR 3,750 per 100 kg next month and in Uttar Pradesh, they are likely to be INR 3,950 per 100 kg, according to market participants.

 

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. In its third advance estimate, the Indian Sugar & Bio-Energy Manufacturers Association said that gross sugar production in the year to September will be 32.4 million tonnes, up 9% from a year ago. The association had earlier estimated gross sugar production in 2025-26 at 34.4 million tonnes. Gross sugar output is estimated before sucrose diversion for ethanol production.  End

 

Edited by Ashish Shirke

 

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