Sugar Stock Norms Tightened Ahead of Festive Season
Government caps dealer stocks at 1,000 quintals and cuts holding period to 15 days to curb hoarding
- Sugar dealers limited to 1,000 quintals of stock.
- Stock holding period reduced to 15 days.
- Kolkata and Assam get a 2,000-quintal limit.
- Retail sugar prices down 15% from August peak.
GG News Bureau
New Delhi, 1st Oct: The Government has revised sugar stock-holding norms from the new sugar season beginning October 1, 2026, to strengthen supply management and ensure availability of sugar at reasonable prices during the festive season.
Under the revised provisions, effective October 15 to November 30, 2026, sugar dealers will not be allowed to hold stocks for more than 15 days from the date of receipt. The maximum stock limit has been fixed at 1,000 quintals at any time and at any location across the country.
A higher limit of 2,000 quintals has been prescribed for Kolkata and its extended metropolitan areas and Assam, citing regional supply requirements, transportation constraints and the interests of consumers in the Northeast.
The government said the measures are intended to prevent unnecessary accumulation of sugar within the distribution chain, discourage speculative trading and facilitate the movement of stocks from mills to dealers and ultimately consumers.
According to the government, average retail sugar prices have declined by 15% from their August peak, while ex-mill prices have fallen by around 28% and remained stable over the past three weeks.
The government has urged wholesalers and retailers to pass on the benefit of lower ex-mill prices to consumers.
Sugar mills have also been advised to begin crushing operations according to agro-climatic conditions in their respective regions. The government said it will continue monitoring the impact of uneven and deficient rainfall associated with El Niño conditions on sugarcane in certain producing regions.
State governments have been advised to take appropriate decisions on crushing operations based on local field conditions.
The government said its sugar policy will continue to focus on both remunerative returns for sugarcane farmers and reasonable prices and adequate supplies for consumers.
