Government Allocates 1.4 Million Tonnes Sugar Quota to Stabilise Prices Before Diwali: Dhampur Sugar and Other Sugar Stocks Gain

The Centre has announced the release of 1.4 million tonnes of sugar for domestic sales in the second half of October 2026, as per news reports.  

This decision comes as ex-mill sugar prices have surged, prompting the government to act ahead of the Diwali festival to ensure adequate supply and curb further price hikes. 

Government's Sugar Quota Allocation 

On October 13, 2026, the Department of Food and Public Distribution (DFPD) issued an order allocating 1.4 million tonnes of sugar to domestic sugar mills for the period from October 13 to October 31, 2026.  

Additionally, 2,00,000 tonnes have been allocated to sugar importers. This allocation was made 2 days ahead of schedule to stabilise prices before Diwali. 

Ex-mill sugar prices have increased by nearly ₹1,000 per quintal over the past 10 days. The government had previously allocated 2.65 million tonnes for September and 3 million tonnes for October. 

Major Allocations to Key States 

Maharashtra, Uttar Pradesh, and Karnataka have received the largest allocations, totalling 1.159 million tonnes, which accounts for approximately 83% of the total allocation to domestic sugar mills.  

Maharashtra has been allocated 4,76,000 tonnes, followed by Uttar Pradesh with 4,51,000 tonnes, and Karnataka with 2,32,000 tonnes. 

Of the 587 mills covered by the allocation, 134 have not received any quota, while 39 have been allocated up to 100 tonnes each. Shree Renuka Sugars and Shri Dutt India have been allocated 1,30,000 tonnes and 70,000 tonnes, respectively, for the second half of October. 

Read More: Raymond Share Price in Focus; Accelerates Andhra Pradesh Expansion to Support Growth Momentum! 

Stock Limits and Export Permissions 

The Centre has tightened stockholding rules for sugar dealers to curb hoarding and contain retail prices during the festival season.  

From October 15 to November 30, 2026, dealers will be allowed to hold a maximum of 1,000 quintals of sugar, with a stockholding period of 15 days. These restrictions do not apply to Kolkata and its extended metropolitan areas or to Assam. 

Separately, the Directorate General of Foreign Trade (DGFT) has permitted the export of 5,841 tonnes of sugar to the European Union under the tariff rate quota scheme for 2026-27. 

Surge in Share Price of Sugar Stocks 

Sugar company share prices have experienced mixed but generally positive momentum, following the government's aggressive regulatory interventions to release an additional 1.4 million tonnes of domestic sugar quota (plus 200,000 tonnes for importers) and slash dealer stock-holding limits to 1,000 quintals to curb skyrocketing festive season prices 

Know the stocks which have gained today following the announcement in the below table 

Note: The above data is as of October 14, 2026, at 11:35 AM. 

Conclusion 

The Centre's release of 1.4 million tonnes of sugar aims to stabilise prices ahead of Diwali, with Maharashtra, Uttar Pradesh, and Karnataka receiving the largest allocations. The government has also tightened stockholding rules to curb hoarding during the festival season. 

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