The government will review the export performance of sugar mills after March 31, 2026, and may reallocate or redistribute unutilized quotas to mills with better export performance or to willing mills, according to communication issued by the Department of Food & Public Distribution (DFPD).
In an order dated January 6, 2026, the DFPD reminded sugar mills that a mill-wise export quota of 15 lakh metric tonnes (LMT) was allocated for the Sugar Season (SS) 2025–26 to facilitate sugar exports. The allocation was issued earlier on November 14, 2025.
As per the provisions of the order, “If any mill does not wish to export its allocated quantity of sugar, they may surrender their quota by March 31, 2026. DFPD may reallocate or redistribute such unutilized quotas to mills with better export performance or to willing mills.”
The department clarified that the export performance review will be undertaken immediately after March 31, 2026.
Further, the government has allowed sugar mills to exchange their export quota, either partially or fully, with the domestic quota of another sugar mill, subject to the condition that such exchanges must be completed by March 31, 2026. The DFPD has categorically stated that no exchange of export quota will be permitted beyond this deadline.
