Indian government allocates record sugar sales quota for September to rein in retail prices

The Indian government has set a record-breaking sugar sales quota for September, allowing mills to sell 13.5 lakh tonnes (lt) in the domestic market during the period of September 16-30. This is the highest-ever allocation for the month, raising the total quantity for September to 26.5 lt. The decision aims to bring down retail prices ahead of the Dussehra festival, which will be celebrated on October 20.

The Food Ministry has ordered sugar mills to sell at least 40 per cent of the allocation in the first week and the remaining quantity in the following week. The top three sugar producing states - Maharashtra, Uttar Pradesh, and Karnataka - have been allocated 83 per cent of the total sugar for the month. Refiners, who were earlier permitted to sell some imported sugar in the domestic market, have been allotted 1 lt, with Shree Renuka Sugars and Shri Dutt India receiving 60,000 and 40,000 tonnes respectively.

Sugar mills are now required to ensure that the sugar sold is dispatched from the mill within seven days of sale. The ministry has also emphasized that any unsold quantity will not be permitted and mills which have sold more than their allocated quota will have to submit a detailed explanation by September 17. The total allocation for the 2025-26 season stands at 272 lt, which is 1.3 per cent lower than the 275.5 lt allocated in the 2024-25 season. However, India's annual sugar consumption is estimated to be 285-290 lt.