Centre cuts sugar dealers’ stock holding period to 15 days to curb hoarding

Retail sugar prices fall 15%; ex-mill prices decline around 28%

New Delhi, October 1: The Government of India has revised sugar stock holding norms for dealers, reducing the maximum holding period to 15 days and capping stocks at 1,000 quintals, as part of measures to prevent hoarding and ensure smooth availability of sugar during the festive season.

The revised norms will come into effect from October 15 and remain in force until November 30, 2026.

Under the new provisions, sugar dealers will not be permitted to hold stocks for more than 15 days from the date of receipt. They will also be prohibited from holding more than 1,000 quintals of sugar at any time and at any location across the country.

Higher limit for Kolkata, Assam

A higher stock holding limit of 2,000 quintals has been prescribed for Kolkata and its extended metropolitan areas and for Assam.

The government said the higher limit takes into account the specific supply-chain requirements of the region. Kolkata receives sugar from Uttar Pradesh, Maharashtra and Karnataka and serves markets across eastern India, including the North-Eastern region.

For Assam, the higher limit has been justified on account of geographical constraints, transportation logistics and consumer interests in the region.

The revised norms are intended to prevent unnecessary accumulation of sugar within the distribution chain and facilitate its movement from mills through dealers and wholesalers to consumers.

The government said the measures are aimed at curbing hoarding, discouraging speculative trading and preventing dealers from accumulating stocks for extended periods.

Retail sugar prices down 15%

The government said average retail sugar prices have declined by 15% from their August peak, while ex-mill prices have fallen by around 28%.

Ex-mill prices have remained stable over the past three weeks, with the government expecting retail prices to decline further as lower prices at the mill level pass through the supply chain.

Sugar mills, dealers, wholesalers and other market participants have been asked to ensure continuous movement of stocks and avoid artificial accumulation or speculative hoarding.

Wholesalers and retailers have also been urged to pass on the benefit of the decline in ex-mill prices to consumers.

Government monitoring sugarcane output

The government said sugar mills have already been advised to begin crushing operations in accordance with agro-climatic conditions in their respective regions.

It will continue to monitor the impact of uneven and deficient rainfall associated with El Niño conditions on sugarcane in certain sugar-producing areas.

The government said it would take necessary measures to maintain a balance between domestic sugar availability, consumer interests and the interests of sugarcane farmers.

State governments have also been advised to take appropriate decisions on the commencement of crushing operations based on prevailing field conditions.

The government said sugarcane farmers and consumers remain the two central pillars of India’s sugar policy, with its approach aimed at ensuring remunerative returns for farmers while protecting consumers from unreasonable price increases and maintaining adequate sugar availability.