Even as speculation is blamed for the recent surge in retail sugar prices, which was Rs 47 per kg in May, the release of monthly quota by the government played a direct role in tightening supply, industry sources said.
Between October 2025 and May 2026, domestic sales allocations were 7 per cent lower than actual mill dispatches in the same period. With monthly quotas consistently matching or kept below the year-ago levels despite rising consumer demand, restricted market availability steadily drove up prices.
The Food Ministry, which regulates the sugar sector including allocating sales quotas to each mill every month, has approved 245.5 lakh tonnes (lt) until August in current sugar season that began from October 2025 for sale. If the September quota is maintained at the year-ago level’s 23.5 lt, the total allocation for domestic sales will be 269 lt, which will be 2.4 per cent lower than 275.5 lt in 2024-25 season.
