Government Imposes New Limits on Sugar Stock to Curb Hoarding and Lower Prices

Starting from October 15, new regulations will limit sugar stock for dealers to 1,000 quintals nationwide. Dealers will only be allowed to hold stocks for a maximum of 15 days. Kolkata and Assam will have a higher limit of 2,000 quintals due to regional needs. The Government expects retail sugar prices to decline further as ex-mill prices stabilize.

The Centre has cut the period for which sugar dealers can hold stock to 15 days and capped their holdings at 1,000 quintals, with effect from October 15 to November 30, 2026.

The curbs are meant to prevent hoarding and keep supplies moving during the festive season.

Kolkata and its extended metropolitan areas, along with Assam, are exempt from the 1,000-quintal cap. A higher limit of 2,000 quintals applies there.

The announcement came on October 1, as the new sugar season began, according to an official statement issued by the Press Information Bureau (PIB).

From October 15, a sugar dealer cannot hold stock for more than 15 days from the date of receipt. A dealer also cannot hold more than 1,000 quintals at any time, at any place in the country.

The Government said the higher limit for Kolkata reflects regional market needs. The city sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies the eastern part of the country, including the North-East. For Assam, the limit takes into account geographical constraints, transport logistics and consumer interest in the region.

The revised norms are meant to ensure sugar is not needlessly accumulated in the distribution chain. They are also meant to move stock smoothly from mills to dealers and then to consumers.

The Government said the move is aimed at curbing hoarding, discouraging speculative trading and stopping dealers from building up stocks. By limiting both the quantity and the duration of holding, it wants to keep supplies available at reasonable prices.

Average retail sugar prices have fallen 15% from their August peak, the Government said. It expects them to decline further as the benefit of lower ex-mill prices reaches consumers.

Ex-mill prices have dropped by about 28% and have been stable for the last three weeks. The Government attributed the decline to measures taken to ensure adequate availability and orderly movement of sugar.

It has asked mills, dealers, wholesalers and other market participants to keep sugar moving through the supply chain and to avoid artificial accumulation or speculative hoarding. Wholesalers and retailers have been urged to pass on the fall in ex-mill prices to consumers immediately.

Sugar mills have been advised to begin crushing in line with the agro-climatic conditions in their regions. State governments have also been asked to take suitable action on crushing based on field conditions.

The Centre said it will keep monitoring the impact of uneven and deficient rainfall linked to El Niño on sugarcane in some producing regions. It will take timely steps to balance domestic availability, consumer interest and the interests of cane farmers.

The Government reiterated that farmers and consumers are the two central pillars of its sugar policy. It said it remains committed to remunerative returns for cane growers while protecting consumers from unreasonable price increases.