Stories
Centre Slashes Sugar Stock Holding Period to 15 Days, Caps Stocks to Curb Hoarding
- •The government has revised sugar stock holding norms for dealers from October 15 to November 30, 2026, to prevent hoarding and ensure smooth supply during the festive season.
- •Sugar dealers are now restricted to holding stocks for a maximum of 15 days from receipt or 1,000 quintals at any location, with a 2,000 quintal limit for Kolkata and Assam.
- •These measures aim to prevent excessive accumulation, discourage speculative trading, and ensure sugar moves efficiently from mills to consumers.
- •Retail sugar prices have dropped 15% from their August peak, and ex-mill prices are down 28%, with the government expecting further price reductions for consumers.
- •The government is monitoring the impact of El Niño on sugarcane and has advised mills to begin crushing operations, urging wholesalers and retailers to pass on price benefits.
Key Questions Answered
Under the revised rules effective from October 15 to November 30, 2026, sugar dealers are prohibited from holding stocks for more than 15 days or keeping more than 1,000 quintals at any location. However, the limit is set at 2,000 quintals for Kolkata, its extended metropolitan areas, and Assam due to transportation and supply needs.
The government revised the norms to prevent hoarding, discourage speculative trading, eliminate excessive accumulation in the distribution chain, and ensure a smooth supply of sugar to consumers during the festive season.
Retail sugar prices have declined by 15% from their August peak, while ex-mill prices have dropped around 28% and remained stable over the past three weeks. The government expects retail prices to decrease further as lower ex-mill prices pass through the supply chain.
