Sugar Prices Expected to Remain Firm Following Reduction in Free Sale Quota

28-Apr-2026 10:38 AM

New Delhi: The Directorate of Sugar and Vegetable Oils under the Union Ministry of Food has fixed the free sale quota for domestic sales for sugar mills across the country at just 2.25 million tonnes for May 2026. This figure is 50,000 tonnes lower than the April quota of 2.3 million tonnes, and 100,000 tonnes lower than the May 2025 quota of 2.35 million tonnes. Prior to this, a free sale quota of 2.7 million tonnes was released in May 2024, and 2.4 million tonnes in May 2023.

The month of May is typically quite hot; consequently, the industrial demand for sugar witnesses a significant surge during this period. Sugar is consumed in large quantities in the manufacturing of cold drinks and ice cream. In light of this, the quota of 2.25 million tonnes allocated for the month of May does not appear to be burdensome.

According to data compiled by Igrain India, the total free sale quota allocated during the first five months of the current year—i.e., January to May 2026—stood at approximately 11.3 million tonnes. This represents a decline of 200,000 tonnes compared to the quota of 11.5 million tonnes allocated during the corresponding period in 2025, and a decline of 800,000 tonnes compared to the quota of 12.1 million tonnes allocated for the same period in 2024. It is anticipated that, bolstered by robust demand, sugar market prices may witness a slight upward trend during May 2026.

The primary season for sugarcane crushing and sugar production has largely concluded. This year, the increase in sugar production did not meet expectations; as a result, the stock held by the mills remains at a normal level. Should export performance prove to be strong, the sugar market is expected to receive a further boost.