New Delhi. The Union Food Ministry has fixed a domestic free sale quota of 23.50 lakh tonnes of sugar for the current month (May), which is equal to the quota of April but three and a half lakh tonnes less than the quota of 27 lakh tonnes set for May 2024. In response to this new quota, the mill delivery price and spot market price of sugar registered a strength of Rs 10 to Rs 60 per quintal during the week from April 26 to May 2.

During the week under review, the mill delivery price of sugar increased by Rs 10 in eastern Uttar Pradesh, Rs 20 in Bihar, Rs 25 each in western Uttar Pradesh and Madhya Pradesh and Rs 60 per quintal in Punjab, while in Gujarat also it registered a rise of Rs 15 to Rs 25.

The free 'sale quota' of 23.50 lakh tonnes of sugar declared for the month of May is considered to be of normal level, hence the millers will not be forced to sell it frequently. Industrial demand for sugar is expected to remain better, due to which prices may remain strong. The Central Government has increased the Fair and Remunerative Price (FRP) of sugarcane by Rs 15 per quintal for the marketing season 2025-26 (October-September). With this, the FRP of sugarcane with an average recovery of 10.25 percent sugar has increased from Rs 340 per quintal to Rs 355 per quintal. The indigenous industry is urging the government to increase the ex-factory minimum selling price (MSP) of sugar in proportion to the increase in the FRP of sugarcane as the production cost of sugar will increase.

The export performance of sugar is not satisfactory. Out of the stipulated quota of 10 lakh tonnes, export shipment of even 4 lakh tonnes has not been done yet. Sugar production is also estimated to be about 60 lakh tonnes less this time as compared to the 2023-24 season. The total production is likely to reach only 260-261 lakh tonnes. The price of sugar will keep fluctuating within a limited range.