Centre fixes 13 lakh tonne sugar sales quota for second half of November to keep prices in check

The Centre has taken a major decision to keep sugar prices in check in the domestic market. The sugar sales quota for the second fortnight of November has been fixed at 13 lakh metric tonnes. The Union Department of Food and Public Distribution issued the official orders on Friday (November 13).

The government has allowed sugar mills to sell, over and above the sales quota fixed for the second fortnight, all the sugar produced in November up to November 30. The decision will benefit mills that began crushing cane in November. It will also benefit mills whose crushing had already begun in October. Mills have already been permitted to sell in November the sugar made in October.

From September 2026, the Centre replaced the old monthly quota system for sugar sales with a 15-day quota system. Its aim is to curb artificial swings in sugar prices, sales at low prices and hoarding at the end of the month.

Under the new system, a separate domestic sales quota is fixed for each sugar mill every 15 days. Each mill must sell at least 40 per cent of the quota approved for the fortnight in the first week. The rest can be sold in the second week.

The government has taken the step to hold down rising sugar prices. At one point, sugar had gone above Rs 70 a kg in many retail markets across the country. According to the government's latest figures, the retail price of sugar in the country's major cities on November 12 was between Rs 61 and Rs 66 a kg. The average retail price across the country was recorded at Rs 60.53 a kg.

To ensure full supplies and fair prices of sugar in the domestic market during the festival season, the government has taken another important decision. Under the Tariff Rate Quota (TRQ), the deadline for the duty-free import of 10 lakh metric tonnes of raw sugar has been extended by two months to December 31, 2026.

Earlier, on August 20, the Finance Ministry had permitted duty-free import of 10 lakh tonnes of raw sugar until October 31. A notification issued in the last week of October then extended the deadline to December 31.

When the government allowed larger sugar imports, prices fell in the domestic market. For this reason, sugar imports are currently low. The import deadline has been extended so that supplies do not fall short if domestic prices rise again later.

Along with permitting imports, the government has also taken steps such as placing limits on traders' sugar stocks to keep supplies and prices under control. The extension of the import deadline will reduce fears of a sugar shortage in the market. The government hopes traders will bring their stocks to the market before consignments of sugar from abroad reach India.

The main aim of all these steps is to maintain full sugar supplies in the domestic market, curb hoarding and provide sugar to consumers at affordable prices.