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Informist, Thursday, Oct. 1, 2026

 

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--Govt cuts sugar stockholding limit for traders to 100 tn from 200 tn 
--Govt cuts traders' sugar stockholding period to 15 days from 30 days 
--Govt: Ex-mill sugar prices down 28% from Aug peak, retail rates down 15% 

 

NEW DELHI – The central government has further tightened the stockholding limit for sugar dealers to 100 tonnes from 200 tonnes, effective from Oct. 15-Nov. 30. It also reduced the stockholding period to 15 days from 30 days, the Ministry of Consumer Affairs said in a release. The government has been gradually tightening stock limits for traders throughout the festival season to keep sugar prices in check. In August, traders were allowed to hold 400 tonnes of sugar. 

 

However, for regions distant from major sugar-producing states, the government has set a relaxed stockholding limit of 200 tonnes. "Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to the eastern part of the country, including the North-Eastern region," the ministry said. "The higher limit for Assam has been provided keeping in view geographical constraints, transportation logistics and consumer interest in the North-Eastern region." 

 

The government has set a stockholding period to prevent hoarding and ensure smooth supply during festivals. "A sugar dealer shall not hold sugar stock for a period exceeding 15 days from the date of receipt of such stock," the ministry said. The government has directed mills to sell 1.40 million tonnes of sugar in the first 15 days of October, higher than the 1.30 million tonnes allocated in the first fortnight of September and 1.35 million tonnes in the second half. The higher quota comes ahead of festivals including Navratri, Durga Puja and Dussehra, while demand is expected to remain firm through Diwali in November.

 

Ex-mill sugar prices have declined 28% from the peak in August and remained stable over the last three weeks. Meanwhile, average retail prices of sugar fell 15% and are expected to decline further as benefits of lower ex-mill prices pass through the supply chain. 

 

Sugar prices had surged during Jul-Aug amid increased speculation that stocks could tighten in the coming months, prompting panic buying. However, supply has since improved following government measures, including stockholding limits on traders and permission for raw sugar imports. On Wednesday, ex-mill sugar prices in Mumbai were flat at INR 4,650-INR 4,850 per 100 kg. In Uttar Pradesh, prices were flat at INR 4,480–INR 4,590 per 100 kg, according to traders.  End

 

Reported by Upasika Singhal

Edited by Avishek Dutta

 

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