June sugar quota higher by 8.5% y-o-y as prices stay firm amid heat waves

The central government announced a quota of 25.5 lakh tonnes of sugar for the sugar mills for the month of June, which is higher by 8.5% over June 2023.

The Department of Food and Public Distribution announced the monthly sale quota for sugar on May 28. The quota for June 2023 was 23.5 lakh tonnes.

It had announced a higher quota of 27 lakh tonnes for May 2024, which was higher by 3 lakh tonnes or 12.5% over May 2023.


Sugar prices continued to increase in May despite a substantially higher quota.

According to the industry experts, higher demand from ice cream and cold drinks industry due to severe heat wave conditions and the elections increased the demand for sugar during the summer season, while early end of the crushing season has reduced the supply in the market.

Traders and millers expect the sugar prices to stay strong in June as well as forecast of heat waves in North India will keep the demand firm.

The central government announces mill wise monthly sales quota to control the sugar prices. It has allocated higher quota for May and June to tame the rising prices. The mills are bound to sell the entire quota allocated to them.