India curbs sugar stock before festivals

The Indian government has imposed new regulations to control sugar stock holdings during the festive season. Starting from October 15 to November 30, 2026, sugar dealers are limited to holding stock for a maximum of 15 days after receiving it and can't keep more than 1,000 quintals at any given time across the country. However, Kolkata and its metropolitan areas, along with Assam, are exempt from the 1,000-quintal cap, with Assam having a higher limit of 2,000 quintals due to regional market needs and logistical considerations.

These measures are aimed at preventing hoarding, encouraging smooth movement of sugar from mills to dealers and then to consumers, and avoiding artificial accumulation or speculative hoarding. By limiting both the quantity and duration of holding, the government hopes to maintain sugar supplies at reasonable prices.

Average retail sugar prices have dropped by 15% from their August peak, and the government expects further declines as the benefits of lower ex-mill prices reach consumers. Ex-mill prices have dropped by around 28% and have been stable for the last three weeks, attributed to measures taken to ensure adequate availability and orderly movement of sugar.

Mills, dealers, wholesalers, and other market participants have been urged to keep sugar moving through the supply chain and to pass on the fall in ex-mill prices to consumers immediately. The government also advised sugar mills to begin crushing based on agro-climatic conditions in their regions and for state governments to take suitable actions on crushing based on field conditions.

The government remains committed to ensuring remunerative returns for cane growers while protecting consumers from unreasonable price increases, while keeping an eye on the potential impact of El Niño-linked uneven and deficient rainfall on sugarcane production in some regions.