The Indian government on Friday allocated a 2.3 million tonnes (mt) sugar quota for domestic sales for June. It is 0.25 mt lower than the quantity permitted a year ago. With this, the 2024-25 sugar season (October-September) may witness a slump in the country’s sugar consumption to less than 28 mt against a record 29.05 mt in 2023-24.
The monthly sugar quota release order, issued by the Food Ministry, shows that the notional stock as of May 31 may be 13.43 mt, based on the production data submitted by mills and the permitted quota for domestic sales and export. With the industry’s projection of 0.4-0.5 mt of more sugar to be produced by mill in Tamil Nadu and Karnataka in the special season until September 30, the availability may be a maximum of 13.93 mt in the four remaining months of the current season.
On the other hand, the consumption as per quota system during June-September period may be at least 9.1 mt including the 2.3 mt June allotment. This leaves this season’s closing stock to fall below 5 mt, which will be at par or may be a tad lower than the October-November festival season’s demand next season, industry experts said.
