The government is likely to fix the domestic sale quota for sugar mills at 2.1-2.2 mln tn for August. In June and July, the Centre had allowed mills to sell 2.1 mln tn and 1.65 mln tn of the sweetener, respectively. The quota will be higher for August than July as we expect an increase in festival season demand ahead of Janmashtami and Raksha Bandhan. In June, the government had asked mills to create a 3-mln-tn buffer stock of the sweetener. It had also fixed a floor price for sale of white sugar by mills at 29 rupees per kg for the ongoing season to help them clear cane arrears, which had topped 230 bln rupees in May.