Sugar mills focus on June free sale quota

27-May-2025 08:12 PM

New Delhi. For April and May, the government had issued a monthly domestic sale quota of 23.50 lakh tonnes of sugar, which aligned closely with domestic demand, resulting in stable prices.

Now, the focus of sugar millers and traders has shifted to the upcoming announcement of the free sale quota for June, expected in the next few days.

Despite being summer months, sugar did not witness strong industrial demand in April and May, and general domestic consumption remained steady.

With the southwest monsoon now active and expected to cover most of the country in June, business activity in the sugar market may see some impact during rainy days. The heaviest rainfall typically occurs in July and August, and some areas may face floods.

The sugarcane crushing and sugar production campaign for the 2024–25 season has concluded. The new marketing season will begin in October 2025. However, a special sugarcane crushing campaign is expected in southern Karnataka and Tamil Nadu between July and September 2025, likely yielding 3.00–3.50 lakh tonnes of sugar.

This will bring the total domestic sugar production for the 2024–25 season to an estimated 261 lakh tonnes, which is 58 lakh tonnes lower than the 319 lakh tonnes produced in the 2023–24 season.

The sugar industry currently holds limited stock, and several months of consumption still remain before new sugar begins arriving in November.

A better production outlook is expected in the next season. The June quota is likely to remain normal in line with current consumption patterns.