Limited Fluctuations Expected in the Sugar Market

27-Jan-2026 09:30 PM

New Delhi: Due to improved supply and availability and weak demand, domestic sugar prices remain relatively stable within a narrow range, with limited fluctuations.

The monthly quota for domestic sugar sales for February 2026 was expected to be announced this week, and it has now been released. Therefore, millers are being forced to quickly sell the remaining portion of their January quota.

Despite the extremely cold weather in December and January, a monthly free sale quota of 2.2 million tonnes of sugar was released in each of those months.

With the expectation of slightly higher temperatures in February, and the potential for increased industrial demand for sugar, the Central Food Ministry has increased the domestic sugar sales quota to 2.25 million tonnes.

This is the same as the February 2025 quota but 50,000 tonnes more than the January 2026 quota. It is worth noting that a free sale quota of 2.25 million tonnes of sugar was also fixed in January 2025.

The December-January quota put pressure on the domestic market. It remains to be seen how much impact the February quota will have on the market. It appears that this quota will prevent sugar prices from rising significantly.