Sugar free sale quota likely to be less for July

26-Jun-2025 12:11 PM

New Delhi. In view of weak domestic demand, the industry and trade sector believes that the Food Ministry may set the free sale quota of sugar at around 22–23 lakh tonnes for July.

According to senior official sources, the monthly quota is expected to be announced today, June 26. Millers have reportedly agreed to carry forward unsold sugar from the June quota into July.

Around 1.50 lakh tonnes of sugar is expected to remain unsold in June, so even with a lower quota for July, supply and availability will not be a concern.

Industry analysts say there is no likelihood of a significant increase in sugar demand in July, as it is considered an off-season for consumption.

Last year, the July quota was 24 lakh tonnes, whereas this year it may be 22–23 lakh tonnes. For June 2025, a quota of 23 lakh tonnes was allocated, but weak industrial demand has made it doubtful whether this entire quantity will be sold.

If about 1.50 lakh tonnes of sugar remains unsold from the June quota, mills may be allowed to sell this quantity in July.

In that case, even if a 22 lakh tonne quota is announced for July, total availability would reach 23.50 lakh tonnes, which should be sufficient given the low demand outlook. As a result, a significant rise in sugar prices is unlikely in July.

The monsoon arrived early this year, shortening the number of peak summer days and slowing the pace of bulk buying. Consequently, millers are struggling to sell their June quotas.

Despite this, they are reluctant to reduce sugar prices, which have already come down compared to earlier levels. Bulk buyers are holding off purchases in anticipation of further price drops. If a larger quota is announced, it could further pressure sugar prices.