The Centre has relaxed monthly dispatch norms for sugar mills for March 2026, citing weak demand during the current month. In an official communication, the government said that lower sugar sales will not be treated as a violation of quota conditions for March.
Under existing guidelines issued on March 28, 2025, sugar mills are required to dispatch at least 90 per cent of their monthly allocated quota, failing which penalties are imposed in the form of quota cuts in subsequent months. However, the government has now provided a one-time relaxation for March 2026.
The move comes amid subdued market demand, which industry players attribute to a mix of seasonal factors and slower institutional offtake. The government had approved a monthly sugar sales quota of 2.25 million tonnes for March 2026.
