Lower Closing Stock of Sugar Expected by End of Season
02-Aug-2025 10:15 AM
Lower Closing Stock of Sugar Expected by End of Season
★ Current season sugar production has declined compared to last year, leading to lower sales quotas.
★ According to a government notification, sugar mills held 9.058 million tonnes of stock as of July 31. For August, a sales quota of 2.25 million tonnes has been allocated. By the end of August, the stock is expected to drop to 6.8 million tonnes.
★ If a quota of 2.35 million tonnes (similar to last year) is allocated for September, the closing stock by the end of the season could be around 4 million tonnes.
★ Last season, the closing stock stood at 7.9 million tonnes.
★ Current season production is expected to be 26.1 million tonnes, while consumption may reach 28 million tonnes.
★ Ahead of Raksha Bandhan demand, the entire July quota of 2.2 million tonnes was sold.
★ Recently, ISMA reported a closing stock estimate of 5.2 million tonnes.
★ Total production for the 2025–26 season is projected at 34.9 million tonnes, which is 18% higher than 29.5 million tonnes in 2024–25.
★ ISMA has also requested government approval for 2 million tonnes of sugar exports.
★ Considering all these factors, along with festive demand before the new sugar season begins, prices are likely to remain firm.