India cuts sugar stock holding period for dealers to 15 days to curb hoarding ahead of festivals

India has shortened the time sugar dealers can keep stock to 15 days and capped their holdings at 1,000 quintals, starting from October 15 to November 30, 2026. These measures aim to prevent hoarding and ensure smooth supply during the festive season. The restrictions do not apply to Kolkata and its surrounding areas, as well as Assam, which have higher limits due to regional market needs and logistical factors.

The government expects average retail sugar prices to fall further as the benefits of lower ex-mill prices reach consumers. Ex-mill prices have dropped by about 28% and have been stable for the past three weeks. The drop in prices is attributed to efforts to ensure sufficient sugar availability and orderly distribution.

Sugar mills have been instructed to commence crushing according to regional agro-climatic conditions, and state governments are urged to take necessary actions based on field conditions. Wholesalers and retailers are encouraged to pass on the price reductions to consumers immediately. The government will continue to monitor the impact of El Niño-related uneven rainfall on sugarcane production in some regions and will take necessary steps to balance domestic availability, consumer interests, and cane farmers' welfare.

The government remains committed to providing fair returns to cane growers while safeguarding consumers from excessive price hikes.