State-wise monthly sugar quota for sale in May 2026
India allocated a May 2026 sugar quota of 22.5 LMT to 586 mills, lower than previous years, as the crushing season ends. Reduced supply may support prices amid rising summer demand. Mills must integrate systems with the NSWS portal and comply with jute packaging norms or risk losing future quotas.
In an order released on April 30, the Food Ministry allocated a monthly sugar quota of 22.5 lakh metric tonnes (LMT) for May 2026 to 586 sugar mills, which is lower than the quota allocated for May 2025.
In May 2025, the government had allocated a monthly sugar quota of 23.5 LMT for domestic sale while in May 2024, the monthly sugar quota allocated was 27 LMT.
In April 2026, the government had allocated a monthly sugar quota of 23 LMT for domestic sale.
According to market experts, following the announcement of the 22.5 LMT sugar quota for May 2026, the domestic market is expected to remain competitive as the sugarcane crushing season is almost over with most of the mills closing crushing operations. This will reduce oversupply in the market and increase in demand due to hike in sale of cold drinks and beverages owing to summer season.
According to the notification, the process of integrating the ERP/SAP systems of sugar mills with the NSWS portal through APIs is underway and the same is required to be completed by 10.05.2026. All sugar mills are hereby directed to ensure development their API modules and integrate with NSWS portal in a time bound manner and submit the monthly P-II for April, 2026 through API by 10th May, 2026. Non-complaint sugar mills may not be allocated any release quota from next month.
All the sugar mills have been directed to ensure the compliance of mandatory packaging of 20% of sugar in jute bags under Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987 and submit the information thereof in P-II proforma on NSWS portal. Any violation of this order would attract the penal provisions under the Essential Commodities Act, 1955, as amended from time to time.
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Source : ChiniMandi
