Sugar Free Sale Quota for May Falls Short of Industry-Trade Sector Estimates

28-Apr-2026 06:04 PM

Mumbai. In view of the potential for increased demand and consumption, the industry and trade sectors had estimated that the free sale quota for sugar for May 2026 would be set between 23.00 and 23.50 lakh tonnes.

However, the government has announced a quota of only 22.50 lakh tonnes—which is 50,000 tonnes lower than the 23 lakh tonnes quota set for April 2026, and 1 lakh tonne lower than the 23.50 lakh tonnes quota established for May 2025. In May 2024, a sugar quota of 27 lakh tonnes was released.

According to the industry and trade sectors, domestic demand and consumption of sugar typically tend to rise in May 2026, with bulk consumers making substantial purchases—primarily comprising the soft drink and ice cream manufacturing industries.

Usage of sugar increases significantly during the hot weather of May. Furthermore, as May marks the season for weddings and other auspicious festivities, sugar consumption is expected to see a further uptick.

Given that the quota for May has been set lower than anticipated, sugar prices are not expected to face significant downward pressure, nor will millers be compelled to rush to liquidate their quotas. According to one analyst, total sugar utilization typically rises to nearly 24 lakh tonnes in April, while consumption in May has historically tended to exceed this figure.

However, the pace of consumption appears somewhat sluggish this time around. While rural areas are currently in the midst of crop harvesting and preparation activities, the concurrent wedding season could potentially drive up sugar demand.

Another market observer suggests that if domestic sugar demand exceeds the allocated quota, millers may be compelled to request an additional quota or sell sugar in excess of their allotted limits. Consequently, sugar prices could witness an average increase of up to ₹100 per quintal over the coming month.