Due to the quota coming in accordance with the expected demand, there is less chance of a huge jump in the price of sugar.
01-Oct-2024 12:17 PM
New Delhi. The Central Government has fixed a free sale quota of 25.50 lakh tons of sugar for the month of October, which is 2 lakh tons more than the September quota of 23.50 lakh tons.
Usually 22-23 lakh tons of sugar is consumed in the country every month, while during the summer months and the festive season, it increases by 1-2 lakh tons.
October is considered the peak month of festivals, so there is a possibility of 25-26 lakh tons of sugar being used in it.
The festival of Navratri is going to start soon, in which the demand for sugar is usually high. According to industry and trade analysts, the free sale quota of October is almost balanced in terms of domestic demand and supply of sugar and hence there may be an atmosphere of normal rise and strength in its prices, but the possibility of a huge jump is less.
This time, adequate sugar quota has been fixed for states like Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu, Bihar and Haryana, while the quota for Karnataka, Punjab, Madhya Pradesh and Uttarakhand is almost normal. Sugar is not produced in the northeastern states of the country and it is procured from other states.
Sugar is not produced in the northeastern states of the country and it is procured from other states. Sugar is procured from Bihar, Uttar Pradesh and even Maharashtra in states like Jharkhand, West Bengal, Assam, Meghalaya, Manipur, Mizoram, Tripura, Nagaland, Arunachal Pradesh and Sikkim.
The government has fixed a free sale quota of 9.64 lakh tonnes for Maharashtra, 8.21 lakh tonnes for Uttar Pradesh and 3.24 lakh tonnes for Karnataka in the month of October, which will facilitate the millers to maintain the flow of additional sugar.
Since the ban on commercial export of sugar has been imposed since June 2023 and it is unlikely to be lifted in the near future, millers are forced to sell their produce in the domestic sector only.
There is no possibility of a decline in the price of sugar at present, but there is also no scope for a huge increase in it.