The Department of Food & Public Distribution (DFPD) on March 16, 2026, issued notification on allocation of export quota of C7587 MT to willing sugar mills during Sugar season 2025-26.
The Government, under the powers of the Essential Commodities Act, 1955 and the Sugar (Control) Order, 2025, has decided to allocate an additional export quota of 87,587 MT of sugar for the sugar season 2025–26 to willing sugar mills based on their requests. The allocated quantity must be exported by June 30, 2026. However, mills that export at least 70% of their quota by this date will be allowed to export the remaining quantity by September 30, 2026. If mills fail to meet the 70% export requirement by June 30, the unutilized quota will lapse and may be reallocated to better-performing or willing mills. No extensions will be granted except in force majeure situations, and the quota is non-transferable between mills.
A penal mechanism has been introduced to ensure compliance. If a mill fails to export the mandatory 70% within the stipulated timeline, the shortfall will be deducted from its future export quota. All grades of sugar can be exported within the allocated limits. Export of refined sugar produced from raw sugar will be permitted, provided it falls within the allocated quota and is backed by appropriate agreements between manufacturers, refineries, and exporters.
The notification also specifies that mills violating earlier stockholding limit guidelines will not be eligible for export quotas in the current season. Supplies made to SEZ refineries within the quota will be treated as exports, and exports under the Advance Authorization Scheme will continue as per existing provisions. The government retains the authority to modify export conditions if required. Sugar mills are required to report export details monthly on the DFPD portal, and any violation of the guidelines will attract strict action under the Essential Commodities Act, 1955 and the Foreign Trade (Development and Regulation) Act, 1992.
[Notification No. 1(4)/2025-SP]
