iGrain India - New Delhi. The Union Food Ministry has fixed a quota of 25.50 lakh tonnes of sugar for mills across the country to sell in the domestic sector during the month of June, which is 1.50 lakh tonnes less than the record quota of 27 lakh tonnes announced for May.
The government's thinking is probably that the general election process will end in the first week of June and the temperature will also decrease with the arrival of the southwest monsoon, which will reduce the demand and consumption of sugar.
A quota of 23.50 lakh tonnes of sugar was fixed for June 2023, compared to which this time the quota has been given 2 lakh tonnes more.
Similarly, the sugar quota for May was increased by 3 lakh tonnes compared to 24 lakh tonnes in 2023 and fixed at 27 lakh tonnes from 2024.
According to industry analysts, the open market price of sugar is likely to remain strong in June as well because its demand and consumption will not decrease much.
Despite the record quota of 27 lakh tonnes announced in May, sugar prices remained high. According to analysts, the total domestic consumption of sugar is expected to increase to above 290 lakh tonnes during the current marketing season (October 2023-September 2024), which is more than the estimated consumption of 280 lakh tonnes for the 2022-23 season.
The work of crushing sugarcane and sugar production for the 2023-24 season is almost over. Despite the ban on commercial export of sugar for the last one year, prices remain strong and it seems difficult to soften much in the near future. Sugarcane and sugar production may also decrease in the next season.