The Indian government has established a record total free-sale quota of 3 million tonnes (30 lakh tonnes) for the entire month of October 2026, marking the highest level recorded for any single month. This includes the 1.4 million tonnes (14 lakh tonnes) allocated for the second fortnight of October (October 13-31), which was released two days ahead of schedule to ensure adequate sugar availability during the festive season. According to the Department of Food and Public Distribution (DFPD), this proactive measure comes after ex-mill prices surged by nearly ₹1,000 per quintal in the past 10 days, with the allocation including 14 lakh tonnes to domestic sugar mills and 2 lakh tonnes to importers. The Centre has advanced the start of the sugar crushing season to October 15 from November 1 to ensure adequate sugar availability during the festive season.
Ex-mill sugar prices have experienced significant increases, with prices in Uttar Pradesh reaching ₹5,400 per quintal from approximately ₹4,450 just 10 days ago. In Maharashtra, prices are quoted at ₹5,100 per quintal. As reported by The Hindu BusinessLine, these price increases have fueled speculation about low stock levels and contributed to the government's decision to announce the quota two days in advance of the usual schedule. The government had previously allocated 2.65 million tonnes for September and 3 million tonnes for October, though some domestically produced sweetener could not be sold despite these allocations. The record monthly allocation could exert some pressure on prices during the festive season, with the government implementing additional measures to control price increases.
According to the latest DFPD order, Maharashtra received the largest share at 4,76,000 tonnes, followed by Uttar Pradesh at 4,51,000 tonnes and Karnataka at 2,32,000 tonnes. Together, Maharashtra, Uttar Pradesh and Karnataka have received 1.159 million tonnes, accounting for about 83% of the 1.4 million tonnes allocated to domestic sugar mills. 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 Pvt Ltd for the second half of October. The Maharashtra State Co-operative Sugar Factories Federation (MSCSFF) has expressed concerns about achieving the projected output, with Pratap Ohol, vice-chairman, noting that sugarcane quality has deteriorated significantly due to inadequate rainfall and rising temperatures, which could affect recovery rates and hamper sugar production.
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, while at the wholesale level, the all-India average sugar price stood at ₹5,254.91 per quintal on the same date. In Delhi's retail market, sugar prices have increased to ₹65 per kg from ₹60 in some places over the past 2-3 days, according to The Hindu BusinessLine. In Sonepur, Odisha, sugar is retailing at ₹50-55 per kg. The government had previously announced 26.5 lakh tonnes sugar quota for September and 30 lakh tonnes for October, though some domestically produced sweetener could not be sold despite these allocations. Keeping in view the robust demand during the festive season, the government has fixed the massive sugar quota of 1.6 million tonnes for the second half of October.
The Centre has 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 to implement revised limits that 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. Separately, the Directorate General of Foreign Trade (DGFT) has permitted the export of 5,841 tonnes of sugar to the European Union under the tariff rate quota scheme for 2026-27, which can be exported during the period from October 2026 to September 2027. The two refiners were approved to sell 265,000 tonnes of imported sugar in the domestic market, and were allocated a combined 300,000 tonnes between September 1 and October 15, but sold less than 60,000 tonnes as domestic selling prices did not make imported sugar commercially viable.
