Sugar Mills Directed to Sell at Least 90% of Monthly Quota

11-Jul-2026 01:29 PM

New Delhi: The Central Government has begun tightening its grip on the sugar industry with the aim of ensuring smooth supply and availability in the domestic market and curbing price surges. The Department of Food and Public Distribution has implemented strict regulations regarding stock-holding limits for sugar mills.

Under these rules, mills are mandatorily required to supply at least 90 percent of their allocated 'free-sale quota' to the market each month. According to the new rule, if millers sell less than this prescribed level in a given month, their quota for the following month will be reduced proportionately.

The Food Ministry has informed all sugar mills about this rule and decision via a formal letter. Previously, millers did not face penalties for selling less than 90 percent of their allocated quota, provided they notified the government by the 20th of that month. However, the government has now abolished this provision.

All sugar mills are hereby informed that if a mill or a group of mills dispatches less than 90 percent of its allocated free-sale quota in a given month, the quota allocated for the subsequent month will be restricted to the percentage actually utilized.

This implies that if a plant utilizes only 80 percent of its quota in a particular month, it will be allocated only an 80 percent quota for the following month.

This government rule came into effect on July 9, 2026, and will remain in force until further notice. The festive season begins next month, a period likely to witness increased demand and consumption of sugar. Should the supply situation in the market become strained, there is a possibility of a price surge. Domestic market prices for sugar have remained high and firm since mid-June.