India lowers sugar sales quota for January
The first four months (October to January) of sugar release quota now stands at 88 lt, which is 4.3 per cent lower from the corresponding period of previous season
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Amid higher production estimates of sugar in the 2025-26 season (October-September), the Indian government has allocated 22 lakh tonnes (lt) of sugar for domestic sales during January, which is 2.2 per cent less against 22.5 lt a year ago. The first four months (October to January) of sugar release quota now stands at 88 lt, which is 4.3 per cent lower from the corresponding period of previous season.
As the demand is lower this year, sugar sales are also down – about 50,000 tonnes lower that actual sales in October-November, trade sources said. This has complicated the government’s sugar management task amid expectation of higher production to deal with the surplus. Industry had earlier flagged its concern over likely delay in cane payment to farmers.
The mill-wise quota allocation order of the government shows that Karnataka’s factories would be able to sell 3,49,588 tonnes against 4,25,348 tonnes, which is down by 18 per cent. But two other major sugar producing states Uttar Pradesh and Maharashtra have received higher quota.
Export quota swap
Mills in Uttar Pradesh have received 7.06 lt domestic sales quota, which is 2.8 per cent higher than 6.86 lt a year ago and those in Maharashtra have got 8.57 lt, which is 4.7 per cent more than 8.18 lt.
Sources said that the lower quota in Karnataka has nothing to do with the sugarcane farmers’ agitation in the State as the allotment is made under a formula which is the same for every State. “Some mills have actually swapped their domestic quota with export quota of mills of other States, and this has reflected in the final allotment for January,” an expert said.
Karnataka’s Sameerwadi sugar factory of Godavari Biorefineries (GBL), has surrendered its domestic sales quota of over 12,000 tonnes by swapping with export quotas of mills of other States according to the latest re-allocation of export quota by the Food Ministry. As a result, the export quota of Sameerwadi sugar factory stands revised to 35,449 tonnes.
Some of the cooperative mills of Maharashtra have also increased their sugar export quota by swapping with domestic sales quota. Under the swapping formula, mills are allowed to exchange their domestic sales quota with export quota so that the overall all India quota remains the same. But, the government has allowed the swapping only between two mills and a single factory cannot increase its own export quota by surrendering its own domestic allotment.
Lower ethanol quota
India’s gross sugar production in 2025-26 season is seen at 343 lt, up from less than 300 lt in 2024-25. The higher export quota – 15 lt against 10 lt – this year has been offset by lower quota for ethanol – 29 lt against 35 lt.
As making ethanol from C-heavy molasses is more profitable than directly from sugarcane juice/syrup, mills are producing more sugar, compared to last year, apart from the higher crushing and more recovery factors.
Meanwhile, the National Federation of Cooperative Sugar Factories Ltd (NFCSF), the industry body of cooperatives, has said that sugar production during October-December 2025 has reached 118.3 lt, up by 24 per cent from 95.60 lt year-ago. But, Bihar, Haryana, Madhya Pradesh, Telangana and Tamil Nadu have reported lower output.
Sugar production so far, in Maharashtra was 48.70 lt, in Uttar Pradesh 35.65 lt and in Karnataka 22.10 lt. These three states are the top producers with a combined share of 90 per cent in this season’s overall output.
Published on December 31, 2025
