The Government has revised sugar stock holding norms to ensure adequate availability of sugar at reasonable prices during the festive season, with the new sugar season commencing from October 1.
Under the revised provisions, sugar dealers will be allowed to hold stocks for a maximum of 15 days, while the stock holding limit has been fixed at 1,000 quintals with effect from October 15 to November 30, 2026.
The revised norms will apply across the country, except Kolkata and its extended metropolitan areas and Assam, where the stock holding limit has been fixed at 2,000 quintals considering the specific market requirements of these regions.
Dealers will not be permitted to hold sugar stocks for more than 15 days from the date of receipt of the stock. They will also not be allowed to hold more than the prescribed quantity at any time or place.
The higher limit for Kolkata and Assam has been provided in view of geographical constraints and transportation logistics. Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to eastern and northeastern parts of the country.
The government said the revised norms are aimed at preventing unnecessary accumulation of sugar in the distribution chain and ensuring its smooth movement from sugar mills to dealers and ultimately to consumers.
The measures are also intended to curb hoarding, discourage speculative trading and prevent dealers from accumulating excessive stocks.
By restricting both the quantity and duration for which sugar can be held, the government seeks to facilitate an orderly supply chain and ensure continuous availability of sugar to consumers at reasonable prices.
Retail sugar prices decline
The government said average retail sugar prices have declined by 15 per cent from their August peak and are expected to fall further as lower ex-mill prices are passed on through the supply chain.
Ex-mill sugar prices have declined by approximately 28 per cent and have remained stable over the past three weeks.
The government attributed the decline to measures taken to ensure adequate availability of sugar and facilitate its orderly movement through the market.
Sugar mills, dealers, wholesalers and other market participants have been advised to ensure continuous movement of sugar through the supply chain and prevent artificial accumulation and speculative hoarding.
Wholesalers and retailers have also been urged to pass on the benefit of the decline in ex-mill sugar prices to consumers without delay.
Focus on sugarcane crushing
Sugar mills have already been advised to commence crushing operations in accordance with the agro-climatic conditions prevailing in their respective regions.
The Union Government will continue to monitor the impact of uneven and deficient rainfall associated with El Niño conditions on sugarcane in certain sugar-producing regions.
It said necessary and timely measures would be taken to maintain a balance between domestic sugar availability, consumer interests and the interests of sugarcane farmers.
State governments have also been advised to take suitable action regarding crushing operations based on prevailing field conditions.
The government reiterated that sugarcane farmers and consumers remain the two central pillars of India’s sugar policy, with a focus on ensuring remunerative returns to farmers while protecting consumers from unreasonable increases in sugar prices and maintaining adequate availability across the country.
