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Govt Tightens Sugar Stock Limits to Stabilize Prices
1 Oct
Summary
- Dealers face a 15-day limit on sugar stock holdings.
- Stock holdings capped at 1,000 quintals nationwide.
- Measures aim to prevent hoarding and ensure steady supply.
The government has implemented new sugar stock holding rules, effective October 15, 2026, to prevent hoarding and ensure steady supplies during the festive season. Dealers will be restricted to holding stocks for a maximum of 15 days from receipt, with a national cap of 1,000 quintals.
Exceptions for Kolkata and Assam allow for higher stock limits of 2,000 quintals due to local market needs. These regulations aim to curb speculative trading and ensure smooth sugar movement from mills to consumers.
This action follows a 15% drop in retail sugar prices from August peaks, with ex-mill prices down approximately 28%. The government urges all market participants to maintain continuous supply and pass on price reductions to consumers.
Additionally, the government is monitoring the impact of El Niño on the sugarcane crop and will take further measures if necessary to balance domestic availability, consumer interests, and farmer welfare.
