Centre Allows Additional Sugar Sales in November as Prices Rise; Fixes 13 Lakh Tonne Quota

The Centre has fixed the domestic sugar sales quota for the second half of November at 13 lakh metric tonnes and allowed eligible mills to sell additional sugar produced during the month, as the government steps up efforts to keep prices under control.

The Department of Food and Public Distribution announced the decision on Friday, November 13. Under the additional permission, mills that began crushing in October or November can sell sugar produced up to November 30 over and above their allocated quota for the second fortnight.

The move is aimed at improving the availability of sugar in the domestic market and preventing further price increases.

Sugar prices remain elevated

Retail sugar prices have risen in recent months, prompting the government to take several steps to ensure adequate supplies.

The all-India average retail price stood at ₹60.53 per kg as of November 12, while prices across major cities ranged from ₹61 to ₹66 per kg, according to the data cited in the official release.

Sugar prices had crossed ₹70 per kg at retail outlets in some parts of the country earlier.

The government has attributed the pressure on prices to supply concerns and has introduced measures to prevent artificial fluctuations, hoarding and speculative activity.

Fortnightly quota system introduced in September

The Centre replaced the monthly sugar sales quota system with fortnightly allocations from September 2026.

Under the revised system, mills must sell at least 40% of their allocated quota during the first week of the fortnight. The remaining quantity must be sold in the second week.

The system is intended to prevent mills and traders from holding back stocks towards the end of a month, which can affect market availability and prices.

Duty-free sugar imports extended till December 31

The government has also extended the deadline for duty-free imports of 10 lakh metric tonnes of raw sugar under the Tariff Rate Quota (TRQ) by two months, from October 31 to December 31, 2026.

The Finance Ministry had initially permitted duty-free imports of the quantity until October 31. The extension is intended to ensure that additional supplies can be brought in if domestic prices rise.

However, imports have remained low following a decline in domestic prices after the government announced the import facility.

The Centre has also imposed stockholding limits on traders as part of its efforts to maintain adequate supplies and contain sugar prices.