The government has maintained 22 lakh tonnes of sugar allocation for domestic sale in July 2026, unchanged from the corresponding month last year. According to reports from The Hindu BusinessLine, this decision comes after the Centre allocated lower monthly sugar quotas for domestic sales since March. The Food Ministry's decision to maintain July supplies at last year's level indicates the government's focus on domestic availability amid rising prices and limited export prospects for 2026-27. The Ministry of Consumer Affairs, Food and Public Distribution (MoCAFPD) officially notified this allocation on June 30, 2026, establishing the nationwide release quota for domestic sale and dispatch in July 2026.
With the July allocation, the cumulative domestic quota for the 2025-26 sugar season (October-September) has reached 223 lakh tonnes, approximately 3 per cent lower than the 229.5 lakh tonnes allocated during the same period last season. As reported by The Hindu BusinessLine, data show that during the first 10 months of the current season, monthly quotas were lower than the year-ago level in seven months and unchanged in the remaining three months. The MoCAFPD notification confirms that individual release quotas have been allocated to 585 sugar mills across various states based on their notional stock position.
Under the July 2026 release order, sugar mills in Uttar Pradesh have been allocated 8.23 lakh tonnes, down 9 per cent from a year ago. In contrast, Maharashtra has received 7.18 lakh tonnes, up 8.5 per cent, while Karnataka has been allotted 3.18 lakh tonnes, a 31 per cent increase. Other states together have been allocated 3.41 lakh tonnes, about 12 per cent lower than a year earlier. According to The Hindu BusinessLine, Maharashtra, Uttar Pradesh and Karnataka together account for 75-80 per cent of India's sugar production.
Retail sugar prices have risen to around ₹50/kg in the Delhi-NCR region from ₹46/kg a few months ago. However, Consumer Affairs Ministry data show the all-India average retail price stood at ₹47/kg on June 30, compared with ₹46.54/kg on September 30, 2025. The average wholesale price was ₹4,363.68 per quintal on June 30, against ₹4,317.63 per quintal at the end of September last year. As reported by The Hindu BusinessLine, the government abruptly banned sugar exports on May 13 until September 30 to rein in domestic prices.
The MoCAFPD notification introduces several compliance requirements for sugar mills. Sugar producers must maintain stocks until July 31, 2026, or until further orders, as per the prescribed stockholding formula. Mills violating monthly stockholding limits will face deductions in future release quotas under the revised enforcement mechanism effective from April 01, 2025. All remaining sugar mills must integrate their ERP/SAP systems with the NSWS portal through APIs and submit the June 2026 P-II return by July 10, 2026. Mills failing to complete API integration or submit required data may not receive release quotas from the following month. Additionally, sugar mills must ensure 20% of sugar is packed in jute bags as mandated under the Jute Packaging Materials (Compulsory Use in Packing Commodities) Act, 1987, and report compliance on the NSWS portal.
