Likely Increase in Sugar 'Free-Sale' Quota for August

28-Jul-2026 08:28 PM

New Delhi. Given the sharp rise in domestic sugar market prices in recent weeks and the anticipated strong demand during the upcoming festive season, trade analysts expect the monthly 'free-sale' quota for the domestic market in August 2026 to be raised to a range of 23.00–23.50 lakh tonnes.

An official announcement regarding this is expected soon. Meanwhile, the government has decided to implement stock-holding limits on sugar starting August 1, a move intended to help curb market volatility.

The 'free-sale' quota for July 2026 was set at 22 lakh tonnes, whereas the quota for August 2025 was 22.50 lakh tonnes. If the quota for August 2026 is fixed at 23 lakh tonnes or higher and the stock-holding limit order is strictly enforced, a further sharp rise in sugar prices is unlikely.

However, the pace of any price decline may also remain slow, as demand is expected to stay robust once the festive season begins in mid-August.