Difficulty in Selling Entire Sugar Quota Due to Reduced Consumption

27-Mar-2026 12:15 PM

New Delhi: The Union Ministry of Food had fixed a domestic sales quota of 2.25 million tonnes of sugar for March 2026, and it appeared that mills would succeed in selling this entire allocated quota. However, sugar consumption has declined in key consumer sectors—such as hotels,

restaurants, large-scale kitchens (community kitchens), and *dhabas*—due to an inadequate supply of LPG. In light of this, it appears unlikely that millers will succeed in selling sugar in accordance with their assigned quotas, and a portion of the quota is expected to remain unsold.

Meanwhile, the industry and trade sectors anticipate that, for the month of April, the government may slightly increase the sugar sales quota, fixing it within the range of 2.30 to 2.35 million tonnes. If this occurs, the downward pressure on sugar prices could intensify, thereby creating difficulties for the mills.

With less than a week remaining in the month of March, the Director General of the apex industry body—the Indian Sugar and Bio-energy Manufacturers Association (ISMA)—states that most mills have managed to sell only 50–60 percent of their allocated quotas.

It is mandatory for millers to sell sugar strictly in accordance with the quotas prescribed for each month, regardless of prevailing market prices. Although there are indications that sugar export performance may see some improvement, a higher quota for April could pose significant challenges for the millers.