Govt Intervenes: New Quota System to Stabilize Sugar

The government has announced that there is no sugar shortage in the country, with recent price increases primarily caused by hoarding and speculative practices. Ex-mill sugar prices have fallen by approximately 20% recently, and retail prices are also beginning to decrease.

To address these issues, a new fortnightly quota system will replace the existing monthly allocation starting in September 2026. This change aims to accelerate the supply of sugar to the market and prevent artificial shortages. Mills will be required to dispatch at least 40% of their allocated sugar within the first week of each fortnight.

Physical verification of sugar stocks confirmed ample availability at mills, with some found holding more stock than declared. Production is expected to rise, with operational mills in Karnataka and Maharashtra adding around 2 lakh tonnes in September 2026. Sugarcane crushing for the new season begins October 15, 2026, with over 10 lakh tonnes expected in October and production projected at 45 lakh tonnes in November 2026.

The government will continue to monitor availability and prices, ready to release additional quotas if necessary, especially to ensure sufficient supply during the upcoming festive season.