The Union Food Ministry has allocated a sugar quota of 22 lakh tonnes for December 2024 for domestic sale, maintaining the same level as the November 2024 quota, but 2 lakh tonnes less than the December 2023 quota of 24 lakh tonnes.

The decrease is attributed to seasonal factors, as the onset of cold weather reduces industrial demand for sugar, such as for cold drinks and ice cream.

Additionally, the ongoing wedding season and festivals, which started in mid-November and continue into December, may lead to occasional spikes in sugar consumption.

The government's approach aims to keep sugar prices stable through adequate supply and availability. While the quota remains unchanged for now, the pressure on prices could arise as sugar production is expected to be somewhat lower this year.

Although the area under sugarcane sowing has increased slightly, natural disasters have impacted the crop, leading to a predicted decrease in sugar production by about 132.28 lakh tonnes, from 4531.58 lakh tonnes in the 2023-24 season to 4399.30 lakh tonnes in 2024-25.

Additionally, sugarcane is increasingly being diverted for ethanol production, further limiting the available sugar output. However, significant back stocks are available, which may help balance the supply and keep the market stable for the time being.