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Govt tightens sugar stock holding norms
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Our Bureau, Mumbai
October 03 , 2026
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With the new sugar season commencing on October 1, 2026, the Government of India has tightened stock-holding norms for sugar dealers to ensure adequate supplies and reasonable prices during the festive season.
Under the revised provisions, effective October 15 to November 30, 2026, sugar dealers will not be allowed to hold stocks for more than 15 days from the date of receipt. The overall stock limit has been fixed at 1,000 quintals at any time and at any location across the country.
For Kolkata and its extended metropolitan areas and Assam, the stock holding limit has been set at 2,000 quintals, considering regional market requirements, transportation logistics and the geographical challenges involved in supplying sugar to the North-Eastern region.
The government said the measures are intended to prevent unnecessary accumulation of sugar across the distribution chain, curb hoarding and speculative trading, and ensure smooth movement of stocks from mills to dealers and ultimately consumers.
In the meanwhile average retail sugar prices have declined by around 15 per cent from their August peak, while ex-mill prices have fallen approximately 28 per cent and remained stable over the past three weeks. The government expects retail prices to decline further as lower ex-mill prices are passed through the supply chain.
Sugar mills, dealers, wholesalers and other market participants have been urged to maintain continuous movement of stocks and avoid artificial accumulation. Wholesalers and retailers have also been advised to pass on the benefit of lower ex-mill prices to consumers.
Sugar mills have been advised to commence crushing operations based on agro-climatic conditions in their respective regions. The Union Government will continue to monitor the impact of uneven and deficient rainfall associated with El NiƱo conditions on sugarcane in key producing regions and take measures to maintain a balance between domestic availability, consumer interests and returns to sugarcane farmers.
State governments have also been advised to take appropriate decisions on crushing operations based on prevailing field conditions.
The government reiterated that ensuring remunerative returns for sugarcane farmers while maintaining adequate sugar availability at reasonable prices for consumers remains central to its sugar policy.
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