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Government Boosts Sugar Sales Quota Ahead of Festive Season to Stabilize Prices
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CNBC TV18•30-09-2026, 23:52
Government Boosts Sugar Sales Quota Ahead of Festive Season to Stabilize Prices
- •The Centre increased the sugar sales quota to 1.40 million tonnes for the first half of October, up from 1.30 million tonnes in September, anticipating higher demand during upcoming festivals like Navratri, Durga Puja, Dussehra, and Diwali.
- •The government shifted to fortnightly sugar sales quotas from September to ensure steady supplies and prevent sharp price increases, replacing the earlier monthly system.
- •Sugar prices have significantly fallen from recent highs, with retail prices declining 11%-12% to around ’57.50 per kg and ex-mill prices dropping nearly 30% to about ’4,450 per 100 kg, due to improved supply conditions and government measures.
- •Measures taken to stabilize prices include stockholding limits on traders and permission to import raw sugar, addressing earlier concerns about tightening supplies and speculative buying.
- •The larger quota aims to meet an estimated annual consumption of 28-29 million tonnes and prevent excessive stockpiling and price swings during the festive season, with stakeholders urged to keep sugar and sugar-based products affordable.
Key Questions Answered
The Department of Food and Public Distribution has set the sugar sales quota at 1.40 million tonnes for the first 15 days of October. This is an increase from the 1.30 million tonnes allocated for the corresponding period in September.
The government shifted from a monthly system to fortnightly sugar sales quotas to ensure steady supplies, prevent sharp price increases, and limit excessive stockpiling and price swings ahead of the festive season.
Government measures, including stockholding limits and raw sugar imports, have helped improve supply conditions. Consequently, retail sugar prices have fallen 11%-12% to around ₹57.50 per kg, while ex-mill prices dropped nearly 30% to around ₹4,450 per 100 kg from August highs.
