22–23 Lakh Tonnes of Sugar Likely to Be Allocated for January

25-Dec-2025 10:55 AM

New Delhi: The Central Food Ministry is likely to allocate a free sale quota of 22-23 lakh tonnes of sugar for domestic sale in January 2026, the first month of the new marketing year. This quota is expected to be equal to or higher than the 22 lakh tonnes allocated for December 2025. 

According to industry market analysts, domestic demand and consumption of sugar are expected to increase in January due to festivals like Makar Sankranti and Pongal, as well as the wedding season. Therefore, a reduction in the quota seems unlikely.

With a smooth supply and availability situation in the domestic market, sugar prices are expected to see limited fluctuations. Sugarcane crushing is in full swing, and sugar production is significantly ahead of the previous season.

The government is expected to release the monthly free sale quota for January 2026 in the next one or two days, which will help millers plan their future strategies.

According to trade analysts, since many festivals will be celebrated in January, the free sale quota for sugar might be slightly higher. This quota could be 22.00-22.50 lakh tonnes or even 22-23 lakh tonnes. This is the usual quota released for January.

This is likely to maintain a stable price environment, although prices might see some improvement intermittently. Sugar prices have already fallen by about Rs. 100 per quintal from their peak levels.

The Bombay Sugar Merchants Association says that a quota of 22 lakh tonnes of sugar may be announced for January, which is the same as the December quota.

Demand for sugar may be strong during the festive season, but mills will have sufficient stock for sale, so a significant increase in prices is unlikely.