Sugar Price Update: Sugar prices, a staple in kitchens for the last couple of months, are expected to stay stable throughout the festive season. The government has made a significant decision to regulate sugar prices. To boost sugar supply during the festive period, sugar mills have been permitted by the central government to sell sugar produced in October or November. This additional quantity will be on top of the regular monthly sales quotas for both months, leading to a surplus of sugar in the market and aiding in price control.
In a directive issued on October 16, the Food Ministry announced that all sugar mills can sell the sugar manufactured in October in either October or November, allowing flexibility in sales. This additional quantity will supplement the sugar already allocated under the monthly sales quota for those months, thus enhancing the sugar supply in the market.
How is the sugar quota determined?
The Food Ministry calculates the sugar quota for domestic sales every fortnight, which amounts to every 15 days. For the first half of October, a quota of 1.3 million tons has been set, increasing to 1.4 million tons for the second half. The surplus sugar supply permitted by the government will be in addition to this fixed quota. Although the quota for November has not been finalized, there is an expectation of an emphasis on increasing supply due to the festive season.
Industry associations have also commended this decision. Praful Vithalani, the president of the All India Sugar Trade Association (AISTA), praised the move, stating that it will elevate sugar supply in the domestic market during the festive period. He mentioned that sugarcane crushing has already commenced at many mills this week, a month earlier than usual. This early start will enhance sugar availability nationwide, helping to stabilize wholesale and retail prices.
Previously, domestic sugar prices had surged to Rs 70 per kilogram. However, the government’s swift implementation of stricter regulations regarding quotas and stockpiles swiftly brought prices under control. Additionally, the government advanced the sugarcane crushing season by a month to enhance sugar availability in the domestic market.