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Centre releases 1.4 mn tonnes sugar quota, caps dealer stock at 1,000 quintals to cool prices ahead of Diwali
Our read
The Centre's quota release and dealer stock cap will probably steady sugar prices through Diwali, with another release or an extended cap as the fallback if ex-mill prices keep rising.
For operators
With retail sugar averaging ₹56.67 per kg on 13 October, the 1.4 million tonne quota should ease supply into Diwali, but the 1,000-quintal dealer stock cap from 15 October to 30 November 2026 limits forward buying, so plan staples stock and pricing around it.
Watch
Retail sugar above the ₹56.67 per kg of 13 October by the end of the 13-31 October window would mean the quota is not cooling prices, so more supply is likely.
Ask next
The report
The Department of Food and Public Distribution allocated the quota for 13-31 October after ex-mill prices rose nearly ₹1,000 per quintal in 10 days. Retail sugar averaged ₹56.67 per kg on 13 October. Dealer stock limits apply from 15 October to 30 November 2026.
- Sugar quota, 13-31 October
- 1.4 million tonnes
- Dealer stockholding limit
- 1,000 quintals
- Extra quota for sugar importers
- 200,000 tonnes
- Average retail sugar price, 13 October
- ₹56.67 per kg
Reported figures
From the report. Source details below
| Additional quota for sugar importers: | 200,000 tonnes |
|---|
What to watch next
- Ex-mill sugar prices against the rise of nearly ₹1,000 per quintal in 10 days
- Size and timing of the November sugar quota announcement
- Import contracts signed against the extra 200,000 tonnes
- State enforcement actions on the 1,000-quintal dealer cap