The central government has amended sugar storage regulations to ensure consumers have an adequate supply of sugar at a fair price during the holiday season. Under the new provisions, the storage period for sugar dealers has been reduced to 15 days, and the maximum inventory volume is set at 1000 quintals.
These revised norms will be in effect from October 15 to November 30, 2026. However, special concessions have been granted to regions, including Calcutta and its extended agglomeration, as well as Assam, allowing dealers to store up to 2000 quintals of sugar.
According to the new rules, any sugar dealer cannot hold stock for longer than 15 days from receipt. Furthermore, in most regions of the country, it is prohibited to store more than 1000 quintals of sugar at any time and in any location.
The government explains these measures as necessary to prevent unnecessary accumulation of sugar in the supply chain, as well as to stop speculation and hoarding. The goal is also to ensure the uninterrupted supply of sugar from sugar mills to end consumers through dealers.
Reduction in retail prices
The government reported that the average retail price of sugar has decreased by approximately 15 percent compared to the highest level recorded in August. Meanwhile, ex-mill sugar prices have dropped by almost 28 percent. For the last three weeks, mill prices have remained stable. The government hopes that this drop in mill prices will be passed on to consumers throughout the supply chain and urges wholesale and retail sellers to immediately pass this benefit on to buyers.
Recommendations for sugar mills to begin crushing
The new sugar crushing season began on October 1. The government advised sugar mills to commence the crushing process according to the agro-climatic conditions of the respective regions. State bodies were also instructed to take appropriate measures regarding the crushing process, taking into account the condition of local fields.
The government stated that it will continue to monitor the impact of uneven and low rainfall on sugarcane due to the El Niño phenomenon in some sugar production areas. It will also take necessary steps to maintain a balance between the needs of the domestic market, consumer interests, and the interests of sugarcane farmers.
The government emphasized that sugarcane farmers and consumers are the two main pillars of the country's sugar policy. The government's priority is establishing fair remuneration for farmers, while maintaining an adequate supply of sugar nationwide and protecting consumers from unjustified price increases are also goals.
