The Centre has released 14 lakh tonnes of sugar for domestic sales during the second half of October to improve market supplies and contain rising prices ahead of Diwali.
The allocation, announced two days ahead of schedule, follows a sharp increase in ex-mill sugar prices, reportedly rising nearly ₹1,000 per quintal over 10 days.
According to the Department of Food and Public Distribution (DFPD), domestic mills have been allocated 14 lakh tonnes for Oct 13-31, while importers received an additional 2 lakh tonnes.
The government had earlier allocated 26.5 lakh tonnes for September and 30 lakh tonnes for October.
Maharashtra, Uttar Pradesh Get Largest Quotas
Maharashtra received the highest allocation at 4.76 lakh tonnes, followed by Uttar Pradesh with 4.51 lakh tonnes and Karnataka with 2.32 lakh tonnes.
Together, the three states account for approximately 83% of the domestic mill allocation.
Of the 587 sugar mills covered, 134 received no quota, while 39 were allocated up to 100 tonnes each.
The government also assigned 1.30 lakh tonnes to Shree Renuka Sugars and 70,000 tonnes to Shri Dutt India.
The refiners had previously received permission to sell imported sugar domestically but reportedly sold less than 60,000 tonnes because prevailing prices made imports commercially unattractive.
Department of Consumer Affairs data showed average retail sugar prices at ₹56.67 per kg on Oct 13.
The corresponding wholesale average stood at ₹5,254.91 per quintal.
Dealer Stock Limits Reduced
The Centre has also tightened stockholding restrictions to discourage hoarding during the festive season.
Under revised rules effective from Oct 15 to Nov 30, 2026, sugar dealers may hold a maximum of 1,000 quintals for 15 days.
The restrictions exclude Kolkata, its extended metropolitan areas and Assam.
Earlier, the government had permitted dealers to maintain stocks of 4,000 quintals for 30 days under rules introduced in August.
That ceiling was subsequently reduced to 2,000 quintals from Sept 15.
The latest reduction forms part of the government's efforts to regulate sugar availability and prevent further price increases during the festival period.
