Govt tightens sugar inventory norms to keep prices under check ahead of festive season

The Indian government has implemented stricter sugar inventory regulations to prevent price spikes during the upcoming festive season. On Tuesday, the Department of Food and Public Distribution released a gazette notification tightening norms, effective from October 15 until November 30, 2026.

These measures aim to keep retail sugar prices under control by limiting the amount of sugar dealers can hold and reducing the time they can store it. Dealers are now restricted to a maximum of 1,000 quintals of sugar per dealer, down from 4,000 quintals previously set in August. Additionally, the permitted holding period for sugar has been slashed from 30 days to just 15 days.

The government's decision follows two earlier reductions in dealer stock limits this year. In August, the ceiling was set at 4,000 quintals, while the holding period was limited to 30 days. This most recent tightening comes as sugar prices have eased from their August peak, falling by 15% on average. Ex-mill sugar prices have dropped by 28% and remain stable over the past three weeks.

The food ministry behind the new regulations claims they are designed to prevent unnecessary stockpiling in the distribution chain and ensure smooth flow from mills to dealers and consumers. The restrictions are also aimed at curbing hoarding and speculative trading activities. With the sugar season running from October to September, this move is intended to ensure adequate supplies reach consumers during the festival period without any shortages.