As per expectations, free sale quota of 22 lakh tonnes of sugar fixed for July

26-Jun-2025 05:59 PM

New Delhi. As expected by the industry and trade sector, the Directorate of Sugar and Vegetable Oil, a body under the Union Food Ministry, has fixed a free sale quota of 22 lakh tonnes of sugar for domestic sale by mills across the country in July 2025.

This is one lakh tonne less than the June quota of 23 lakh tonnes and two lakh tonnes less than the 24 lakh tonnes allocated in July 2024.

According to the data, this is the smallest monthly quota since February 2024, when a quota of 22 lakh tonnes was also declared.

The same quantity was fixed for August, November and December 2024. The lowest recent quota was in February 2023, at 21 lakh tonnes.

During the first half of the current year (January–June 2025), the cumulative free sale quota stood at 160 lakh tonnes, which is 10 lakh tonnes less than the 170 lakh tonnes allocated during January–June 2024, but 1.50 lakh tonnes more than the 158.50 lakh tonnes set for the same period in 2023.

The July quota is not included in this total. Only two months—August and September—remain in the current marketing season, which began in October 2024. For that month, a higher quota of 25.50 lakh tonnes was set, while 22 lakh tonnes each were fixed for November and December 2024.

It is reported that around 1.50 lakh tonnes of sugar from the June 2025 quota remain unsold. Some mills have agreed to carry this stock forward into the July quota, while others are opposing the move.

The government’s decision on this matter is awaited. If the unsold June stock is added to the July quota, the total availability for sale in July could rise to about 23.50 lakh tonnes.

Due to weak domestic demand, especially from bulk buyers, sugar sales have been sluggish. Bulk buyers are reportedly waiting for a price correction before making further purchases.