Sugar mills can sell 24.5 lakh tonne of the sweetener in the open market in the current month, the government said on Tuesday.
The central government has allocated sugar quota for sale to each of the 524 mills in the country.
"This increase (in quota for March) is attributable to various factors. There is a pattern of high sales/dispatches around this time of the year," the food ministry said in a statement.
Mills are allowed to sell sugar at a minimum selling price of Rs 31 per kg. The rate was increased recently from Rs 29 per kg to help mills realise maximum revenue and clear cane price arrears of farmers, it said.
Recently, mills were also advised to go for advance booking of sugar sales to bulk consumers.
The government has been fixing sugar quota for mills since June 2018 and implementing the Sugar Price (Control) Order 2018 in order to manage surplus production in the country and to stabilise sugar prices with a view to clear cane price arrears of farmers.
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