NEW DELHI: With the start of the new sugar season on October 1, the Government of India has implemented additional measures to ensure that consumers have adequate access to sugar at reasonable prices during the festive season.
The government has reduced the stock holding period for sugar dealers to 15 days and set the stock holding limit at 1,000 quintals, effective from October 15, 2026, to November 30, 2026. This applies except in Kolkata and its extended metropolitan areas, as well as the State of Assam. On September 18, the government had previously allowed sugar dealers to hold stock for up to 30 days.
Under the new regulations, effective October 15, 2026, sugar dealers are prohibited from holding sugar stock for more than 15 days from the date they receive it. Additionally, the stock limit cannot exceed 1,000 quintals at any location across the country.
To account for specific regional market demands, the stock holding limit has been increased to 2,000 quintals for Kolkata and its extended metropolitan areas, as well as the State of Assam. Kolkata sources sugar from Uttar Pradesh, Maharashtra, and Karnataka, distributing it to the eastern part of the country, including the northeastern region. The higher stock limit for Assam acknowledges geographical constraints, transportation logistics, and consumer needs in the northeastern region.
These measures are primarily aimed at reducing hoarding, discouraging speculative trading, and preventing the accumulation of sugar stocks by dealers. By limiting the quantity and duration for which sugar can be held, the government intends to ensure a smooth movement of sugar through the supply chain, making it continuously available to consumers at reasonable prices.
Average retail sugar prices have decreased by 15 percent from their peak in August and are expected to continue to decline as the benefits of lower ex-mill prices are passed through the supply chain. Ex-mill sugar prices have dropped by approximately 28 percent and have remained stable over the last three weeks. This decline reflects the effectiveness of various government measures designed to ensure adequate sugar availability and facilitate its orderly movement in the market.
The Union Government will continue to monitor the effects of irregular and insufficient rainfall associated with El Niño conditions on sugarcane production in certain regions and will take necessary and timely measures to maintain a balance between domestic availability, consumer interests, and the welfare of sugarcane farmers.
State governments have also been advised to take appropriate action regarding crushing operations based on prevailing field conditions.