Sugar stock limits tightened as government moves to curb hoarding during festive season

New Delhi: With the new sugar season beginning from October 1, the government has tightened stock holding norms for sugar dealers, aiming to keep supplies moving and prevent hoarding during the festive season.

Under the revised rules, sugar dealers will be allowed to hold stocks for a maximum of 15 days from the date of receipt. A stock limit of 1,000 quintals has also been fixed for dealers across the country, effective from October 15 to November 30, 2026.

An exception has been made for Kolkata and its extended metropolitan areas and Assam, where dealers can hold up to 2,000 quintals. The higher limit has been kept in view of the region's supply and transportation requirements, particularly for Assam and the wider North-Eastern market.

The revised norms are intended to prevent sugar from being unnecessarily accumulated within the distribution chain. By restricting both the quantity and duration for which dealers can hold stocks, the government expects sugar to move more quickly from mills to dealers and ultimately to consumers.

The move comes at a time when sugar prices have already eased in the domestic market. Average retail sugar prices have fallen around 15 per cent from their August peak, while ex-mill prices have declined by approximately 28 per cent and remained stable over the past three weeks.

The government has asked wholesalers and retailers to pass on the benefit of lower ex-mill prices to consumers. Sugar mills, dealers and other market participants have also been advised to ensure continuous movement of stocks and avoid artificial accumulation or speculative trading.

At the production end, sugar mills have been advised to begin crushing operations according to agro-climatic conditions in their respective regions. The government will also continue to monitor the impact of uneven and deficient rainfall associated with El Niño conditions on sugarcane in some sugar-producing areas.

State governments have been asked to take appropriate decisions on the timing of crushing operations based on field conditions.

The latest measures reflect the government's attempt to balance two priorities in the sugar sector: ensuring remunerative returns for sugarcane farmers while keeping sugar available to consumers at reasonable prices.

The government has reiterated that farmers and consumers remain central to India's sugar policy, with measures being taken to maintain adequate domestic supplies and orderly movement across the supply chain.