Record Free-Sale Quota Likely to Exert Pressure on Sugar Market

16-Sep-2026 10:36 AM

New Delhi: The Central Government has fixed a record total free-sale quota of 26.50 lakh tonnes of sugar for the current month (September). This move is expected to increase domestic supply and availability, thereby exerting downward pressure on prices. Notably, the free-sale quota for sugar is now determined on a fortnightly basis rather than monthly.

A domestic sales quota of 13 lakh tonnes was fixed for the first fortnight (September 1–15) and 13.50 lakh tonnes for the second fortnight (September 16–30), bringing the total quota for September to a record high of 26.50 lakh tonnes—an increase of 4 lakh tonnes over the August total of 22.50 lakh tonnes.

While the Ganesh Chaturthi festival is currently being celebrated with great fervor in states like Maharashtra—driving up local demand and consumption—the allocated free-sale quota of 13.50 lakh tonnes appears substantial in comparison. Although ex-factory and wholesale sugar prices have dropped significantly from their peaks, retail prices remain high.

The government is attempting to bring retail prices down to normal levels (₹40–45 per kg), a range observed in July. The festive season is ongoing, but the peak period is expected to arrive in October and November.