Sugar prices unlikely to fall due to export quota intact

28-Mar-2025 12:46 PM

Mumbai. Although there is a possibility of a sharp decline of 50-60 lakh tonnes in the domestic production of sugar during the current marketing season as compared to the previous season, still the government is not in the mood to cut its export quota or withdraw the quota.

Earlier it was being reported that the government may reconsider the export quota but later the situation was clarified.

It is worth mentioning that in January, the government had approved the export of a total of 10 lakh tonnes of sugar to the mills across the country for the current marketing season (October-September) of 2024-25, out of which export contracts of more than 6 lakh tonnes have been signed. At such a juncture, the government does not want to take any adverse decision.

Anyway, the estimated data presented by the apex industry body - ISMA clearly shows that during the current marketing season of 2024-25, the supply and availability of sugar in the domestic division will remain smooth and a good stock of it will be present even at the end of the season.

If any unpleasant decision was taken in the matter of export quota, then there could have been a partial psychological pressure on the price of sugar in the domestic market, but no such indication has been given by the government so far.

Meanwhile, a free sale quota of 23.50 lakh tonnes of sugar has been declared for the month of April, which is being considered almost normal and hence there is very little possibility of a fall in prices. With normal fluctuations of Rs 50-100 per quintal,

the price of sugar can keep moving within a certain range, while some more ups and downs can come in it occasionally according to demand and supply.

Usually 22-23 lakh tonnes of sugar is consumed in April as its industrial demand remains strong. ISMA has estimated the production of 264 lakh tonnes of sugar, domestic use of 280 lakh tonnes and export of 10 lakh tonnes in the current marketing season of 2024-25.