The Centre has tightened stock-holding norms for sugar dealers, cutting the permitted holding period to 15 days and capping stocks at 1,000 quintals, as it moves to prevent hoarding and ensure smooth supplies during the festive season, the Ministry of Consumer Affairs, Food and Public Distribution said on Thursday.
The revised norms come into effect from 15 October 2026 and will remain in force until 30 November 2026. They were announced as the new sugar season began on 1 October.
The revision halves the holding period from the 30 days fixed in the Centre's order of 28 July, which came into force on 1 August, and cuts the cap sharply from 4,000 quintals.
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Under the revised provisions, a sugar dealer cannot hold stock for more than 15 days from the date of receipt. Nor can a dealer hold more than 1,000 quintals at any time and at any place across the country.
A higher limit of 2,000 quintals applies to Kolkata and its extended metropolitan areas and to Assam. The government said Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to eastern India, including the North-East.
The higher limit for Assam reflects geographical constraints, transport logistics and consumer interest in the region, it added.
The ministry said the norms aim to stop sugar accumulating unnecessarily in the distribution chain and to keep supplies moving from mills through dealers to consumers. The measure targets hoarding, discourages speculative trading and prevents dealers from building up stocks.
By limiting both the quantity and duration of holding, the government said it seeks an orderly flow of sugar and continuous availability at reasonable prices.
Retail And Ex-Mill Prices Fall
The ministry said average retail sugar prices have declined 15% from their August peak and are expected to fall further as lower ex-mill prices pass through the supply chain. Ex-mill prices have dropped by around 28% and have stayed stable over the last three weeks, it said.
It attributed the decline to measures taken to ensure adequate availability and orderly movement of sugar in the market.
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Wholesalers and retailers have been urged to pass on the benefit of lower ex-mill prices to consumers immediately. Mills, dealers, wholesalers and other participants are expected to prevent artificial accumulation or speculative hoarding.
Monsoon And Crushing
Sugar mills have been advised to begin crushing in line with agro-climatic conditions in their regions.
The Union government said it will keep monitoring the effect of uneven and deficient rainfall linked to El Niño on sugarcane in some producing regions, and will take timely steps to balance domestic availability, consumer interest and the interests of farmers.
State governments have also been advised to act on crushing operations based on field conditions.
The ministry reiterated that sugarcane farmers and consumers are the two central pillars of India's sugar policy.
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