Vinod Bhat
New Delhi: With the commencement of the new sugar season from 1st October, The Government of India has further strengthened measures to ensure adequate availability of sugar to consumers at reasonable prices during the festive season.
The Government has reduced the stock holding period for sugar dealers to 15 days and fixed the stock holding limit at 1,000 quintals, with effect from 15 October 2026 to 30 November 2026, except in Kolkata and its extended metropolitan areas and the State of Assam.
Under the revised provisions, with effect from 15 October 2026, a sugar dealer shall:
- Not hold sugar stock for a period exceeding 15 days from the date of receipt of such stock.
- Not hold sugar stock exceeding 1,000 quintals at any time and at any place across the country.
- Considering the specific market requirements of the region, the stock holding limit has been fixed at 2,000 quintals for Kolkata and its extended metropolitan areas and the State of Assam.
Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to the eastern part of the country, including the North-Eastern region. The higher limit for Assam has been provided keeping in view geographical constraints, transportation logistics and consumer interest in the North-Eastern region.
The revised norms are aimed at ensuring that sugar is not unnecessarily accumulated in the distribution chain and that supplies move smoothly from sugar mills through dealers and ultimately reach the end consumer. The measure is particularly aimed at further curbing hoarding, discouraging speculative trading and preventing accumulation of sugar stocks by dealers. By limiting the quantity and duration for which sugar can be held, the Government seeks to facilitate an orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices.
Retail Sugar Prices Decline by 15%
Average retail sugar prices have declined by 15 per cent from their August peak and are expected to decline further as the benefit of lower ex-mill prices passes through the supply chain. Ex-mill sugar prices have declined by approximately 28 per cent and have remained stable over the last three weeks.
The decline reflects the impact of various measures taken by the Government to ensure adequate availability of sugar and facilitate its orderly movement through the market.
The Government has reiterated that sugar mills, dealers, wholesalers and other market participants are expected to ensure continuous movement of sugar through the supply chain and prevent artificial accumulation or speculative hoarding. Wholesalers and retailers have also been urged to immediately pass on the benefit of the substantial decline in ex-mill sugar prices to consumers.
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 and take all necessary and timely measures to maintain a balance between domestic availability, consumer interest and the interests of sugarcane farmers.
Concerned State Governments have also been advised to take suitable action regarding crushing operations based on prevailing field conditions.
The Government reiterates that sugarcane farmers and consumers are the two central pillars of India’s sugar policy. While the Government remains committed to ensuring remunerative returns to sugarcane farmers, it is equally committed to protecting consumers from unreasonable increases in sugar prices and ensuring adequate availability of sugar across the country.
