Source: Press Information Bureau (PIB), Government of India — Ministry of Consumer Affairs, Food and Public Distribution · PIB Delhi · Read the original release on pib.gov.in
- Retail sugar prices fell by 15 percent and ex-mill prices by almost 28 percent.
With the start of the new sugar season from October 1, the Government of India has further strengthened measures to ensure availability of adequate quantity of sugar at reasonable prices to consumers during the festive season.
The government has reduced the stock holding period for sugar traders to 15 days and set the stock holding limit at 1,000 quintals which will be effective from October 15, 2026 to November 30, 2026. Not applicable in Kolkata and its extended metropolitan areas and the state of Assam.
These amended provisions are effective from 15 October 2026 and under them a sugar trader has to comply with the following norms.
Do not retain the sugar stock for more than 15 days from the date of receipt.
Do not stock more than 1,000 quintals of sugar at any time and at any place across the country.
Keeping in mind the specific market requirements of the region, the stock holding limit for Kolkata and its extended metropolitan areas and the state of Assam has been fixed at 2,000 quintals.
Kolkata buys sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to the eastern part of the country, including the north-eastern region. The upper limit for Assam has been determined keeping in mind the geographical constraints, transportation system and consumer interest in the north-eastern region.
The objective of the amended rules is to ensure that there is no unnecessary accumulation of sugar in the distribution chain and that the supply flows smoothly from sugar mills through dealers ultimately to the end consumer. The measure is specifically meant to curb hoarding, discourage speculation and prevent accumulation of sugar stocks by dealers. By limiting the quantity and storage period of sugar, the government seeks to facilitate orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices.
15 percent decline in retail sugar prices
Average retail sugar prices have fallen 15 per cent since peaking in August and are expected to decline further as the supply chain benefits from lower prices. Mill sugar prices have declined by about 28 per cent and have remained stable for the last three weeks.
This decline reflects the impact of various measures taken by the government to ensure adequate availability of sugar and facilitate its smooth movement in the market.
The Government has reiterated that sugar mills, dealers, wholesalers and other market participants are expected to ensure continuous movement of sugar through the supply chain and prevent artificial accumulation or hoarding for speculation. Wholesalers and retailers have also been urged to immediately pass on the benefits of the huge fall in mill sugar prices to consumers.
Sugar mills have already been advised to start crushing operations as per the agro-climatic conditions prevailing in their respective areas. The Central Government will continue to monitor the impact of irregular and inadequate rainfall associated with El Nino conditions on sugarcane in some sugar producing areas and take all necessary and timely measures to maintain a balance between domestic availability, consumer interest and the interests of sugarcane farmers.
The concerned State Governments have also been advised to take appropriate action regarding crushing operations based on the prevailing circumstances.
The Government reiterates that sugarcane farmers and consumers are the two main pillars of India's sugar policy. The Government is also committed to ensure remunerative returns to sugarcane farmers, protect the interests of consumers from undue increase in sugar prices and ensure adequate availability of sugar across the country.
This is the official press release issued by the Press Information Bureau (PIB), and is published without changes.
