July Sugar Sales Quota Likely at 2.2–2.3 Million Tonnes

26-Jun-2025 09:46 AM

July Sugar Sales Quota Likely at 2.2–2.3 Million Tonnes
★ Sugar sales have slowed down due to weak demand and the impact of the monsoon. The market expects the government to fix the July 2025 sugar sales quota at 2.2–2.3 million tonnes, compared to 2.4 million tonnes in July last year.
★ In June 2025, mills were allocated a quota of 2.3 million tonnes, but around 150,000 tonnes remain unsold. The highest unsold stock is with mills in Uttar Pradesh, where demand has been the weakest. Maharashtra mills have relatively lower unsold stock.
★ Mills are unwilling to cut prices further, while bulk buyers are staying away from purchases. Some mills have requested the government to allow a rollover of unsold June stock into July, though many in the industry oppose the move.
★ The early arrival of the monsoon and the absence of extended heatwaves have sharply impacted demand across India, leading to a drop in prices.
★ However, we believe that upcoming festive and wedding season demand in the coming months may support prices.