Now Reading: Centre sets 13 lakh tonne sugar quota for second half of November
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Centre sets 13 lakh tonne sugar quota for second half of November
The Story in Brief
The Centre has fixed the sugar sale quota at 13 lakh metric tonnes for the second half of November, requiring mills to sell at least 40 per cent of their allocation during the first week to prevent hoarding and artificial price rises. Retail sugar prices had earlier touched Rs 70 per kg, but as of 12 November the all-India average stood at Rs 60.53 per kg.
Separately, the government extended the deadline for duty-free imports of one million tonnes of raw sugar under the Tariff Rate Quota to 31 December 2026, from the earlier 31 October deadline. The extension aims to ensure supplies during the festive season and contain inflationary expectations, though imports have remained limited as domestic prices declined after the announcement of additional overseas supplies.
Indian Opinion Analysis
The quota system now forces mills to sell 40% of their fortnightly allocation in the first week, a structured release designed to prevent end-of-month hoarding. The extension of duty-free raw sugar imports to 31 December 2026 provides an import buffer, yet actual imports remain limited because domestic prices have already softened after the government signalled additional overseas supplies. The government’s core challenge is enforcing the quota mechanism to keep retail prices below Rs 70 per kg while the crushing season begins and festive demand peaks. Whether the stockholding limits imposed on traders will be effectively monitored remains an open question.
Source: nationalheraldindia.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
