The Department of Food and Public Distribution has set the sugar sales quota at 1.40 million tonnes for the first 15 days of October, up from 1.30 million tonnes for the corresponding period in September.
The higher allocation comes ahead of Navratri, Durga Puja and Dussehra in October, followed by Diwali in November, when demand for sugar typically increases.
The government shifted to fortnightly sugar sales quotas from September, replacing the earlier system of setting a single quota for the entire month. The move is aimed at ensuring steady supplies and preventing sharp price increases.
For September, mills were allowed to sell a total of 2.65 million tonnes of sugar, 13% more than the 2.35 million tonnes prescribed a year earlier.
The October 2025 quota was 2.40 million tonnes, compared with 2.55 million tonnes in October 2024.
Sugar prices have fallen from recent highs
Sugar prices had risen sharply in July and August despite the monsoon season typically being a relatively weak period for demand, as consumers tend to buy fewer sweets and cold drinks.
The increase was partly driven by concerns that supplies could tighten in the coming months, prompting speculative buying and fears of shortages.
Supply conditions have since improved following government measures, including stockholding limits on traders and permission to import raw sugar, according to industry experts.
Sugar prices have also fallen significantly from their recent highs.
Industry bodies said last week that retail sugar prices had declined 11%-12% from their record levels to an average of around ₹57.50 per kg.
Ex-mill prices have fallen nearly 30% to around ₹4,450 per 100 kg, compared with record levels of ₹6,000-₹6,400 per 100 kg seen in some markets in August.
The government has also asked stakeholders across the sugar supply chain, including soft-drink makers and food-processing companies, to ensure that sugar and sugar-based products remain affordable during the festive season.
Why the October quota matters
The larger quota for the first half of October reflects the government’s attempt to prepare for higher festive demand without allowing supplies to tighten sharply.
Data compiled by Informist show that cumulative monthly sugar sales quotas during the 2025-26 sugar year, which runs from October to September, totalled 27.20 million tonnes. That compares with 27.55 million tonnes during the corresponding period of 2024-25.
India consumes an estimated 28-29 million tonnes of sugar a year, according to Informist.
With demand expected to rise through October and November, the fortnightly quota system is intended to keep enough sugar in the market while limiting excessive stockpiling and sharp price swings.