Indian Government Sets Sugar Sale Quota at 1.3 Million Metric Tons for Late November

New Delhi, November 13 (Daily Kiran) : The Indian government has announced a sugar sale quota of 1.3 million metric tons for the domestic market during the second half of November. This decision was revealed in an official statement from the Department of Food and Public Distribution on November 13, 2026.

In addition to the established quota, sugar mills are permitted to sell sugar produced by November 30, provided they began crushing sugarcane either in November or as early as October. Mills that commenced operations in October have already been allowed to sell their October-produced sugar in November.

The government shifted from a monthly quota system to a bi-weekly quota system in September 2026. This change aims to prevent artificial price fluctuations, curb low-priced sales, and reduce sugar stockpiling at the end of the month. Under the new system, each mill’s quota is determined every 15 days.

Furthermore, the government mandates that at least 40% of each mill’s allocated quota must be sold in the first week, with the remaining quantity to be sold in the following week. These measures are part of the government’s strategy to control rising sugar prices, which had previously surged above ₹70 per kilogram in several retail markets.

As of November 12, retail sugar prices in major cities ranged between ₹61 and ₹66 per kilogram, with the national average recorded at ₹60.53 per kilogram. To ensure adequate sugar availability at reasonable prices during the festive season, the government has extended the deadline for tariff rate quota (TRQ) imports of 1 million tons of raw sugar to December 31, 2026.

Initially, the finance ministry had allowed this duty-free import until October 31, but it was later extended. Following the announcement of increased sugar imports, domestic market prices have seen a decline, resulting in lower import levels for now.

The government believes that extending the import deadline will help maintain sufficient supply in the market, especially if domestic prices rise again. Allowing imports is also expected to alleviate inflation concerns, reducing pressure on domestic prices. Traders tend to release their stock into the market before foreign shipments arrive.

To further regulate sugar availability and prices, the government has implemented additional measures, including setting stock limits for traders. The overarching goal is to maintain a steady supply of sugar in the domestic market while controlling ongoing price increases.