UP Sees Reduced Sugar Quota; Maharashtra, Karnataka Get More
29-Nov-2025 12:08 PM
New Delhi. The Union Food Ministry has set a free sale quota of 2.2 million tons of sugar for millers across the country for domestic sale during December 2025. This is 200,000 tons, or 10 percent, more than the November 2025 quota of 2.0 million tons, but equal to the December 2024 quota of 2.2 million tons.
Compared to November, the free sale quota for sugar for December has been reduced in Uttar Pradesh, while the quota has been increased in Maharashtra and Karnataka.
Food Ministry data shows that the sugar quota for Maharashtra has been increased to 7.63 lakh tons and for Karnataka to 4.24 lakh tons, significantly higher than November, but the quota for Uttar Pradesh has been reduced by approximately 30 percent to 6.57 lakh tons.
Additionally, the free sale quota for states like Madhya Pradesh, Punjab, and Tamil Nadu has also been significantly reduced. Under this, Madhya Pradesh's quota has been reduced by 37 percent to 40,208 tons, Punjab's quota by 11 percent to 41,041 tons, and Tamil Nadu's quota by 64 percent to 32,282 tons. This could lead to a reduction in sugar supply in these states.
The Food Ministry states that the December quota for these states has been reduced due to the surplus sugar sold during the September quarter.
Central government regulations require all sugar mills to sell their stocks within their allotted quota, and if any mill sells more than this, its future quota will be reduced by the same amount.
Furthermore, under the Jute Packaging Materials/Compulsory Use of Packing Commodities Act, 1987, all units are required to pack at least 20 percent of their sugar in jute bags.
According to trade analysts, millers in Maharashtra and Karnataka will particularly benefit from the new quotas, as they will help them export larger quantities to other shortage-hit states.
This could lead to a strengthening of prices. The challenges posed to millers in Uttar Pradesh will be reduced. Sugar prices are generally expected to remain strong.