News Capsule: Action Against 16 Mills, May Sugar Sales Quota Cut
01-May-2026 12:47 PM
News Capsule: Action Against 16 Mills, May Sugar Sales Quota Cut
★ The government has withheld the May sugar sales quota of 16 mills due to stock limit violations and misreporting. As a result, the all-India sugar sales quota has been reduced to 2.18 million tonnes, down from the earlier 2.25 million tonnes.
★ According to the government, the closing stock reported by mills in the March 2026 P2 form was lower than the actual calculated stock based on submitted data.
State-wise changes:
* Karnataka: ~19% decrease (MoM)
* Maharashtra: ~18% decrease
* Uttar Pradesh: ~11% increase
★ For context, the quota was 2.30 million tonnes in April, while it stood at 2.35 million tonnes in May 2025.
Market impact:
★ The lower quota is likely to support sugar prices in the near term due to tighter supply in the open market.