The Centre on Tuesday released a quota of 1.4 million tonnes of sugar for domestic sales during the second half of October as ex-mill sugar prices have risen sharply in recent days. The allocation was announced two days ahead of schedule to ensure adequate supplies before Diwali and prevent further price increases.
According to an order issued by the Department of Food and Public Distribution (DFPD), the government allocated 1.4 million tonnes to domestic sugar mills for October 13-31. An additional 200,000 tonnes has been allocated to sugar importers.
Ex-mill sugar prices have risen by nearly ₹1,000 per quintal over the past 10 days.
The government had allocated 2.65 million tonnes of sugar for September and 3 million tonnes for October.
Maharashtra, Uttar Pradesh get largest allocations
According to the DFPD order, Maharashtra, Uttar Pradesh and Karnataka together have received 1.159 million tonnes, accounting for about 83 per cent of the 1.4 million tonnes allocated to domestic sugar mills.
Maharashtra has been allocated 476,000 tonnes, followed by Uttar Pradesh at 451,000 tonnes and Karnataka at 232,000 tonnes.
Of the 587 mills covered by the allocation, 134 have not received any quota, while 39 have been allocated up to 100 tonnes each. The government has also allocated 130,000 tonnes to Shree Renuka Sugars and 70,000 tonnes to Shri Dutt India for the second half of October.
The two refiners had approval to sell 265,000 tonnes of imported sugar in the domestic market. The government had allocated a total of 300,000 tonnes to them between September 1 and October 15. However, they sold less than 60,000 tonnes because domestic selling prices did not make imported sugar commercially viable, the news report said.
According to data from the Department of Consumer Affairs, the all-India average retail price of sugar stood at ₹56.67 per kg on October 13. At the wholesale level, the all-India average sugar price stood at ₹5,254.91 per quintal on October 13.
Govt tightens stock limits for sugar dealers
The Centre has also tightened stockholding rules for sugar dealers to curb hoarding and contain retail prices during the festival season.
The Department of Food and Public Distribution issued a gazette notification last week to implement the revised limits, which will apply from October 15 to November 30, 2026. Dealers will be allowed to hold a maximum of 1,000 quintals of sugar, with a stockholding period of 15 days.
The restrictions do not apply to Kolkata and its extended metropolitan areas or to Assam.
In August, the government had set a stockholding limit of 4,000 quintals for sugar dealers from August 1 to November 30, with a maximum holding period of 30 days from the date of receipt. The limit was subsequently reduced to 2,000 quintals from September 15.
Govt allows 5,841 tonnes of sugar exports to EU
Separately, the Directorate General of Foreign Trade (DGFT) has permitted the export of 5,841 tonnes of sugar to the European Union (EU) under the tariff rate quota (TRQ) scheme for 2026-27.
In a public notice dated October 9, the DGFT said the quantity could be exported during the period from October 2026 to September 2027 under the duty concession arrangement.
In another notification, the DGFT extended the minimum import price (MIP) requirement for glufosinate and its salts until April 12, 2027. These substances are used in weed-control products.
The DGFT has also amended the export policy for prepared culture media to allow the issuance of shipment clearance and health certificates wherever required by the importing country.
Prepared culture media are nutrient-rich solid, semi-solid or liquid formulations used in laboratories to grow, isolate and identify microorganisms for clinical, industrial and research purposes.