Free Sale Sugar Quota of 22.50 Lakh Tonnes Set for June
26-May-2026 05:44 PM
New Delhi: The Directorate of Sugar and Vegetable Oils under the Union Ministry of Food has indicated that a quota of 22.50 lakh tonnes of sugar has been allocated for mills across the country for sale in the domestic market during June 2026. This figure is equivalent to the 22.50 lakh tonnes quota set for May 2026, though it represents a reduction of 50,000 tonnes compared to the 23 lakh tonnes quota established for June 2025.
During the current month (May), severe heatwaves have been observed across most parts of the country; however, the expected surge in industrial demand and prices for sugar has not yet materialized. It is true that domestic market prices for sugar remain firm, and millers do not hold such massive stocks that they would be compelled to resort to distress selling. Previously, it was believed that the May quota was somewhat insufficient relative to domestic demand and requirements; however, it now appears to be well-balanced.
As far as June is concerned, temperatures will undoubtedly remain high, and the intense heat is likely to persist; concurrently, however, the South-West monsoon is expected to remain active. Consequently, the likelihood of rainfall will remain high, and temperatures are expected to fluctuate due to cloud cover.
The Ministry of Food had previously set a free sale sugar quota of 25.50 lakh tonnes for June 2024 and 23.50 lakh tonnes for June 2023; furthermore, a quota of 23 lakh tonnes was allocated for June 2025.
This time around, a significant reduction has been implemented in the quota. This measure is expected to help sustain the firmness of market prices for sugar.
For the first half of 2026 (January–June), the total sugar sales quota will amount to 135 lakh tonnes—a figure significantly lower than the 138 lakh tonnes quota allocated for the corresponding period in 2025, and the 146 lakh tonnes quota allocated for the same months in 2024. The industry currently holds limited stock, which could decline further—falling below 5 million tonnes—by September 30, 2026.