Govt tweaks sugar quotas, alters state allocations

Domestic availability remains balanced despite regional allocation changes amid seasonal consumption and industrial demand

The Centre has revised state-wise sugar sales quotas for June, increasing allocations for Maharashtra and Karnataka while reducing the quota for Uttar Pradesh, according to a notification issued by the Department of Food and Public Distribution.

  Uttar Pradesh, the country’s largest sugar-producing state, has been allotted a sales quota of 819,459 tonnes for June, down 6% from 872,909 tonnes in May. In contrast, Maharashtra’s allocation has been increased by 17% to 778,206 tonnes, while Karnataka received a 7% higher quota of 284,924 tonnes.

  The government maintained the all-India domestic sugar sales quota at 2.25 million tonnes for June, unchanged from May. However, the allocation is 2.2% lower compared with the same period last year. Market participants said the quota was broadly in line with expectations of 2.25-2.30 million tonnes. 

  Some traders had argued that the May quota was insufficient to fully meet seasonal demand generated by summer consumption and wedding-related purchases. Demand from bulk consumers such as soft drink makers and ice cream manufacturers typically rises during the summer months. Rural demand also tends to strengthen during the marriage season, supporting sugar consumption across several states.

 Among other states, Karnataka recorded a notable increase in allocation, reflecting steady domestic demand. Maharashtra’s higher quota is expected to improve sugar availability in western markets and support supplies to industrial users. 

Several states witnessed lower allocations for June. Punjab’s quota fell 18%, Tamil Nadu’s declined 27%, Madhya Pradesh’s dropped 12%, while Haryana and Uttarakhand also saw reductions. Gujarat and Bihar received slightly lower quotas compared with the previous month.  —Informist