The Centre has announced a sugar quota of 1.4 million tonnes for domestic sales during the latter half of October. This decision comes as ex-mill sugar prices have surged significantly in recent days. The allocation was made two days earlier than planned to ensure sufficient supply prior to the Diwali festival and to mitigate any further price hikes.

According to a directive from the Department of Food and Public Distribution (DFPD), the government has designated this sugar allocation for the period from October 13 to October 31. Additionally, 200,000 tonnes have been earmarked for sugar importers. Reports indicate that ex-mill sugar prices have increased by nearly ₹1,000 per quintal in the past ten days.

In September, the government allocated 2.65 million tonnes of sugar, followed by a further allocation of 3 million tonnes for October. The timely release of this quota aims to stabilise the market ahead of the festive season.

Maharashtra and Uttar Pradesh Receive Largest Allocations

The DFPD order reveals that Maharashtra, Uttar Pradesh, and Karnataka collectively received 1.159 million tonnes, which constitutes approximately 83 per cent of the total allocation for domestic sugar mills. Maharashtra has been allocated 476,000 tonnes, while Uttar Pradesh follows closely with 451,000 tonnes, and Karnataka has received 232,000 tonnes.

Out of the 587 sugar mills included in this allocation, 134 have not been assigned any quota, and 39 mills have been allocated up to 100 tonnes each. Furthermore, Shree Renuka Sugars and Shri Dutt India have been allocated 130,000 tonnes and 70,000 tonnes, respectively, for the latter half of October. These refiners had previously received approval to sell 265,000 tonnes of imported sugar in the domestic market.

Despite the approval, reports indicate that less than 60,000 tonnes were sold due to the domestic selling prices rendering imported sugar unviable. As of October 13, the all-India average retail price for sugar was ₹56.67 per kg, while the wholesale average price stood at ₹5,254.91 per quintal.

Government Tightens Stock Limits for Sugar Dealers

In a bid to control hoarding and stabilise retail prices during the festive season, the Centre has tightened stockholding regulations for sugar dealers. A gazette notification from the DFPD last week outlined the revised limits, which will be in effect from October 15 to November 30, 2026. Under the new rules, dealers will be permitted to hold a maximum of 1,000 quintals of sugar, with a stockholding period restricted to 15 days.

These restrictions do not apply to Kolkata and its extended metropolitan areas, nor to the state of Assam. Earlier in August, the government had set a stockholding limit of 4,000 quintals for sugar dealers from August 1 to November 30, which was later reduced to 2,000 quintals starting September 15.

In a separate development, the Directorate General of Foreign Trade (DGFT) has authorised the export of 5,841 tonnes of sugar to the European Union under the tariff rate quota (TRQ) scheme for 2026-27. A public notice dated October 9 stated that this quantity could be exported between October 2026 and September 2027 under a duty concession arrangement.

Additionally, the DGFT has extended the minimum import price (MIP) requirement for glufosinate and its salts until April 12, 2027. These substances are utilised in weed-control products. The DGFT has also revised the export policy for prepared culture media to facilitate the issuance of shipment clearance and health certificates as required by importing countries.

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