Govt Takes Steps to Boost Sugar Supply; Ex-Mill Prices Fall 20%
Weekly sugar quotas from September, faster mill dispatches and increased production are expected to strengthen domestic availability
August 28, 2026 - The Government has taken a series of proactive measures to ensure adequate availability of sugar and prevent artificial tightening of supplies in the domestic market. Ex-mill sugar prices have declined by around 20% in recent days, while retail sugar prices have also started coming down. Given the normal transmission of changes through the supply chain, retail prices are expected to follow the downward movement in ex-mill prices shortly.
The Government has assured consumers that there is no shortage of sugar in the country and that all necessary measures will be taken to ensure adequate and continuous availability of sugar at reasonable prices across the country, particularly during the forthcoming festive season.
Other Highlights
Government stock verification confirms adequate availability of sugar. In several cases, sugar mills were found to have stocks higher than those declared in their monthly returns.
Weekly sugar quota allocation from September will replace the monthly quota system, enabling the Government to monitor the market on a near real-time basis and release additional quota whenever required.
Sugar sold by mills must be dispatched within seven days, ensuring faster movement of sugar from mills to dealers and the domestic market and preventing unnecessary stock accumulation.
Additional sugar is entering the market. Refiners have been permitted to sell converted sugar brought under the Advance Authorisation Scheme, while dealers/bulk consumers holding excess stocks are also offloading sugar.
Early crushing and new-season production will significantly strengthen availability: operational mills in Karnataka and Maharashtra are expected to add around 2 LMT during September, while more than 10 LMT is expected to be produced in October and around 45 LMT in November.
