The Centre has tightened sugar stockholding rules for dealers during the ongoing festive season, cutting the holding period from 30 days to 15 days from the date of receipt. The government has also capped the quantity dealers can hold at 1,000 quintals, as it seeks to prevent hoarding.
The revised norms will apply from October 15 to November 30, 2026. The new sugar season began on Thursday (October 1).
What are the new sugar stock limits?
From October 15, dealers will not be allowed to hold sugar for more than 15 days from the date they receive the stock. They will also not be allowed to hold more than 1,000 quintals at any time or place across the country, the Ministry of Consumer Affairs, Food & Public Distribution said.
For Kolkata and its extended metropolitan areas and Assam, the limit has been set at 2,000 quintals. The government said the higher limit takes into account regional supply requirements, transportation constraints and the role of Kolkata as a supply point for eastern and northeastern markets.
The move is aimed at ensuring that sugar does not remain accumulated in the distribution chain and continues to move from mills to dealers and, ultimately, consumers.
Sugar prices have fallen from August peak
Average retail sugar prices have fallen 15 per cent from their August peak, while ex-mill prices have declined by around 28 per cent and remained stable over the past three weeks, according to the government. It has asked mills, dealers, wholesalers and retailers to ensure the smooth movement of stocks and pass on lower ex-mill prices to consumers.
Demand for sugar generally rises between August and November as festivals such as Ganesh Chaturthi, Dussehra and Diwali increase consumption.
The Fair and Remunerative Price (FRP) for sugarcane for the 2026-27 season has also been fixed at ₹365 per quintal at a basic recovery rate of 10.25 per cent.
Govt measures to support domestic supply
The stockholding restrictions are part of a broader set of measures taken this year as concerns over domestic sugar availability and prices increased.
In May this year, the government prohibited exports of raw, white and refined sugar until September 30, replacing the earlier “restricted” export policy. The move came amid concerns over domestic stocks and lower-than-expected production in some key sugar-producing states.
In August, the government also allowed imports of 1 million tonnes of raw sugar at zero duty. The measure was aimed at cooling domestic prices ahead of the festival season. India normally levies a 100 per cent duty on raw sugar imports.
The government later changed the conditions for these imports, allowing imported raw sugar to be converted into refined sugar and sold in the domestic market within two months of the filing of the Bill of Entry. The October 31 import cut-off remained unchanged.