Centre tightens sugar stock rules ahead of festive season

New Delhi, Oct 1 (UNI) The government has tightened sugar stockholding norms from October 15 to ensure adequate availability and keep prices under check during the festive season, as the new sugar season begins from October 1.

Under the revised rules, sugar dealers will be allowed to hold stocks for a maximum of 15 days from the date of receipt. The stockholding limit has also been capped at 1,000 quintals at any location across the country. The revised restrictions will remain in force from October 15 to November 30, 2026, with specific exemptions for Kolkata and its extended metropolitan areas and Assam. For Kolkata and its extended metropolitan areas as well as Assam, the government has set a higher stockholding limit of 2,000 quintals.

The higher ceiling has been prescribed in view of the region's supply-chain requirements. Kolkata receives sugar from major producing states such as Uttar Pradesh, Maharashtra and Karnataka and acts as a distribution hub for eastern India and the Northeast. In Assam, geographical constraints and transportation challenges have also been taken into account while fixing the higher limit.

The government said the revised norms are intended to prevent excessive accumulation of sugar within the distribution chain and facilitate its movement from mills to dealers and ultimately to consumers. The measure is also aimed at curbing hoarding and speculative trading by limiting both the quantity of sugar that dealers can hold and the duration for which the stocks can be retained.

The government's move comes as sugar prices have already softened in recent months. Average retail sugar prices have declined by around 15 per cent from their August peak, while ex-mill sugar prices have fallen by approximately 28 per cent. Ex-mill prices have remained stable over the past three weeks. The government expects retail prices to ease further as the decline in ex-mill prices is passed through the supply chain. Sugar mills, dealers, wholesalers and other market participants have been asked to ensure the continuous movement of stocks and avoid artificial accumulation or speculative hoarding.

Wholesalers and retailers have also been urged to pass on the reduction in ex-mill prices to consumers. The measures coincide with the commencement of the new sugar season from October 1. The government has advised sugar mills to begin crushing operations in line with agro-climatic conditions in their respective regions. The Centre is also monitoring the impact of uneven and deficient rainfall associated with El Niño conditions on sugarcane production in some key sugar-producing regions.

The government said it would take necessary measures to maintain a balance between domestic sugar availability, consumer interests and remunerative returns for sugarcane farmers. State governments have also been advised to take appropriate decisions on the commencement of crushing operations based on local field conditions.

The government reiterated that sugarcane farmers and consumers remain the two central pillars of its sugar policy, with the objective of ensuring fair returns to farmers while protecting consumers from unreasonable price increases and maintaining adequate sugar supplies across the country.

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