22.5 Lakh Tonne Sugar Quota to Meet February Demand

28-Jan-2026 06:07 PM

New Delhi: The Directorate of Vegetable Oils and Sugar, under the Union Ministry of Food and Public Distribution, has allocated a quota of 22.50 lakh tonnes of sugar for domestic sale in February 2026, effective from February 1st.

This quota is 50,000 tonnes more than January's allocation but is the same as the quota for February 2025.  Previously, a quota of 22 lakh tonnes was released in February 2024 and 21 lakh tonnes in February 2023.

In December and January, a quota of 22 lakh tonnes each was allocated, despite weak demand and consumption. As a result, millers, especially in Maharashtra and Karnataka, were forced to sell their stock at reduced prices.

The mill delivery price of sugar fell below the cost of production. Industry associations are urging the government to increase the minimum selling price (MSP) of sugar from the current level of Rs. 3100 per quintal to at least Rs. 4000 per quintal, but the government is delaying this decision. This has left the sugar industry disheartened.

A good industrial demand for sugar is expected in February as rising temperatures and increasing heat could lead to higher consumption of sugar in the production of cold drinks and ice cream. This will reduce the pressure on millers to sell their stock.

However, the 22.50 lakh tonne sugar quota is considered sufficient to meet the domestic demand and consumption for February. Therefore, while prices may see some improvement amidst better business activity, a significant surge is unlikely.