Low Chances of Sharp Rise in Sugar Prices Due to Adequate Supply and Availability

28-Mar-2026 05:19 PM

New Delhi. The Union Food Ministry has fixed a quota of 2.3 million tonnes of sugar for domestic sale in April. This is 50,000 tonnes higher than the March quota but 50,000 tonnes lower than the quota issued in April 2025. Normally, during April and May the intense summer heat increases industrial demand and domestic consumption of sugar, which generally supports stronger prices. Last year, a free sale quota of 2.35 million tonnes was issued in April and the entire quantity was sold.

However, the situation appears somewhat different this year. In March, a free sale quota of 2.25 million tonnes was issued, but there are doubts whether the entire quantity will be sold. This is mainly because LPG supply disruptions in many parts of the country weakened sugar demand from hotels, restaurants, community kitchens, and some other consumption segments. Some hotels and restaurants were even closed for a few days.

In addition, temperatures have not risen significantly so far, which may have resulted in relatively lower sugar consumption in the production of ice cream and cold drinks during March. It is understood that by the third week of March, many sugar mills were able to sell only about 50–60% of their allotted quota, with the remaining stock still lying with them.

If mills are allowed to sell the unsold March quota in April, the supply and availability of sugar in the market will increase significantly. In that case, the chances of a sharp rise in prices will be limited. Sugar demand and price trends in April will also depend on how the weather conditions develop.