Centre Reduces Sugar Stock Limit to 1,000 Quintals Amidst Festive Season Restrictions
NEW DELHI: The Indian government has tightened stock limits for sugar dealers, capping inventories at 1,000 quintals and mandating that stocks be sold within 15 days of receipt. These new regulations, effective from October 15 until November 30, aim to curb hoarding and ensure that lower sugar prices at the mill level benefit consumers. The announcement was made by the Ministry of Consumer Affairs, Food and Public Distribution.
The revised rules come as the new sugar season begins on October 1, coinciding with increased festive demand. The government noted that ex-mill sugar prices have decreased by approximately 28% and remained stable over the past three weeks. Average retail prices have also dropped by about 15% from their peak in August. Wholesalers and retailers have been instructed to pass on these lower prices to consumers immediately.
Under the amended rules, dealers are prohibited from holding more than 1,000 quintals of sugar at any time or retaining stocks for more than 15 days from the date of receipt. However, Kolkata and its extended metropolitan areas, as well as Assam, have been granted a higher stock limit of 2,000 quintals due to their unique distribution needs. Kolkata serves as a major distribution hub for eastern and northeastern India, while Assam’s higher limit accounts for geographical and transportation challenges.
The government previously imposed a nationwide dealer stock limit of 4,000 quintals in August, which was later reduced to 2,000 quintals on September 15. The latest restrictions further halve the permitted stock and shorten the holding period to 15 days. These measures are also intended to discourage speculative trading and prevent artificial stock accumulation during periods of heightened seasonal demand.
In addition to these stock limits, the Centre is monitoring sugarcane availability due to concerns over erratic rainfall linked to El Niño conditions in some producing regions. Sugar mills have been advised to commence crushing operations based on local agro-climatic conditions, while state governments are urged to take appropriate actions in response to local circumstances. The government will continue to oversee domestic sugar availability and prices to balance consumer interests with fair returns for sugarcane farmers.
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