The Directorate of Sugar and Vegetable Oil, under the Union Ministry of Food and Public Distribution, has announced a free sale quota of 22.50 lakh tonnes of sugar for January 2025, which is considered to be balanced in terms of domestic demand and supply.

This is a slight increase from the 22 lakh tonnes set for December 2024 but remains consistent with the quotas established in January 2023 and January 2024.

In 2024, sugar quotas varied throughout the year, with some months seeing higher allocations due to specific factors like weather conditions and the political climate surrounding the Lok Sabha elections.

For instance, in May 2024, a record quota of 27 lakh tonnes was set due to severe heat and political factors, while quotas ranged between 22 lakh and 25.50 lakh tonnes in other months.

Notably, the peak festive period in October 2024 saw a higher quota of 25.50 lakh tonnes to cater to the increased demand.

In January, the colder weather typically reduces industrial demand for sugar, and the increased availability of jaggery also impacts sugar demand.

While Makar Sankranti is not expected to significantly boost demand, the upcoming wedding season and other auspicious festivals may lead to a rise in sugar consumption.

Therefore, the domestic sugar market is likely to see stable prices with limited fluctuations in January 2025.