Sugar quota likely to rise in April; demand seen mixed
26-Mar-2026 01:27 PM
Sugar quota likely to rise in April; demand seen mixed
★ The Centre is likely to set the sugar sales quota for April at 2.30–2.35 million tonnes, higher than 2.25 million tonnes in March.
Demand is expected to improve with rising temperatures, particularly from ice-cream and cold-drink manufacturers, supporting overall consumption.
★ However, demand from the HORECA (hotel, restaurant, catering) sector remains weak due to LPG shortages and the ongoing West Asia crisis. Additionally, lower festival activity and a shift towards healthier alternatives may keep household demand subdued.
★ The April quota could be similar to or slightly lower than last year, as around 105,000 tonnes of demand has been impacted by the LPG shortage. Still, institutional and bulk buyers are expected to drive consumption amid peak summer.
★ On the supply side, total sugar production for the current season is estimated at around 32.4 million tonnes after ethanol diversion. With the crushing season ending by March, supply pressures are expected to ease.
★ Prices are likely to remain range-bound with a slight upward bias in April. In Maharashtra, prices are seen around Rs. 3,750 per quintal, while in Uttar Pradesh they may hover near Rs. 3,950 per quintal.