Archive · 28 Aug 2026
Government Tightens Sugar Quotas as Prices Ease
The Indian government says the country has enough sugar, even though prices recently went up.
It says some mills kept more sugar than they reported or sold less than their permitted amount.
In some cases, buyers waited weeks to collect sugar after purchasing it.
The government says this made sugar seem scarcer than it really was.
From September, mills will receive sugar-sale quotas every two weeks instead of every month.
They must sell much of each quota quickly and dispatch sold sugar within seven days.
The government has also allowed imports, limited some stockpiling, and banned exports.
Ex-mill prices have fallen by about 20%, and retail prices have started to ease.
Fresh sugar production is expected after crushing begins on October 15, helping supplies during the festive season.
The government will replace monthly sugar-sale quotas with fortnightly allocations to mills from September.
Mills must sell at least 40% of each allocation in the first week and the remainder in the following week.
Sugar sold by mills must be dispatched within seven days, while bulk consumers are urged not to overstock.
The government says ex-mill prices have fallen about 20% and that India has adequate sugar supplies.
New-season crushing begins October 15, with October production unrestricted and November output projected at 45 lakh tonnes.
- Who
- The Indian government, sugar mills, dealers, bulk consumers, and the Indian Sugar and Bio-energy Manufacturers Association (ISMA) are involved.
- What
- The government will introduce fortnightly sugar-sale quotas and require mills to dispatch sold sugar within seven days.
- When
- The new quota system begins in September; the 2026-27 marketing year begins in October, with crushing scheduled to start on October 15.
- Where
- Across India.
- Why
- The measures are intended to improve supply monitoring, prevent artificial scarcity and hoarding, and keep sugar available at reasonable prices.
- Quota change
- Fortnightly sugar-sale allocations will replace monthly quotas from September.
- Sales requirement
- Mills must sell at least 40% of each allocation in the first week and the remainder in the following week.
- Dispatch deadline
- Sugar sold by mills must be dispatched within seven days of sale.
- Price movement
- Ex-mill sugar prices have declined by around 20% in recent days, while retail prices have also begun easing.
- Government measures
- The government allowed imports of 10 lakh tonnes of raw sugar by October 31, imposed stock limits on dealers and bulk consumers, and banned exports.
- Supply outlook
- ISMA estimates 2025-26 net production at 279 lakh tonnes, opening stocks at 50 lakh tonnes, and domestic demand at 280-285 lakh tonnes.
- New-season production
- More than 10 lakh tonnes is expected to be produced in October, with November output projected at around 45 lakh tonnes.
