The Indian government has implemented stricter stock control measures for sugar traders to prevent hoarding during the festive season. The stock holding limit for sugar dealers has been reduced to 1,000 quintals (approximately 100 tonnes) at any point in time, down from the 4,000 quintals previously allowed. For Kolkata and its extended metropolitan areas, along with Assam, the stock holding limit remains at 2,000 quintals (approximately 200 tonnes) due to geographical constraints and transportation logistics. According to the Ministry of Consumer Affairs, Food and Public Distribution, these revised norms will come into effect from October 15 and remain in force till November 30. The ministry stated that these measures are particularly aimed at further curbing hoarding, discouraging speculative trading and preventing accumulation of sugar stocks by dealers. The government has also stipulated that sugar dealers will be allowed to hold stock only for 15 days, with the maximum holding period previously fixed at 30 days. The government has also asked traders to liquidate surplus stock over the next 15 days to comply with the revised Order.
The Indian government has raised the sugar sales quota to 1.40 million tonnes for the first 15 days of October, up from 1.30 million tonnes for the corresponding period in September. According to reports from CNBC TV18, this allocation comes ahead of Navratri, Durga Puja and Dussehra in October, followed by Diwali in November, when demand for sugar typically increases. The Food Ministry has clarified that for the purpose of determining compliance with the seven-day dispatch requirement, the term 'sale' shall mean the generation or issuance of the sale invoice by the concerned sugar mill. Mills that start crushing in October will be able to sell their sugar, in addition to the quota, at any time during October and November. The norms aim to stop sugar accumulating unnecessarily in the distribution chain and to keep supplies moving from mills through dealers to consumers. The Centre said it was strengthening measures to ensure availability of sugar to consumers at reasonable prices during the festive period.
Mills in the top three sugar-producing states have been allocated 10.77 lakh tonnes, or 83 per cent, of the total quota. As reported by CNBC TV18, this includes 4.39 lakh tonnes in Maharashtra, 4.18 lakh tonnes in Uttar Pradesh, and 2.20 lakh tonnes in Karnataka. The government has directed sugar mills to ensure that sugar sold is dispatched from the mill within seven days of sale, with the term 'sale' defined as the generation or issuance of the sale invoice. According to the latest reports, mills are gearing up to start sugarcane crushing earlier than normal from around October 15 in Maharashtra and from October 20 in western Uttar Pradesh. The higher limit for Assam reflects geographical constraints, transport logistics and consumer interest in the region, as Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to eastern India, including the North-East. Kolkata is a major centre of sugar trade as it caters to demand in east and north-east states, with traders from Kolkata and its adjoining areas sourcing sugar from mills in the three top producers.
Retail sugar prices have declined 15% from their August peak, with ex-mill prices falling by around 28% and remaining stable over the last three weeks, as reported by the Ministry of Consumer Affairs. According to the Department of Consumer Affairs' price monitoring cell, the average retail price stood at ₹55.62 per kg on Thursday, representing an 11% month-on-month decline and 20% higher than a year earlier. Industry bodies reported that retail sugar prices had declined 11-12% from their record levels to an average of around ₹57.50 per kg, while ex-mill prices have fallen nearly 30% to around ₹4,450 per 100 kg. The Indian Sugar and Bio-energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) confirmed that ex-mill prices had dropped 30% over the previous month to ₹4,450 per quintal. The government also said that the average retail sugar prices have fallen 15 per cent from their August peak and are expected to decline further as lower prices in the supply chain are realised. The ministry has urged wholesalers and retailers to immediately pass on the benefit of the decline in ex-mill prices to consumers.
The total allocation in the 2025-26 season (October-September) has been 27.20 million tonnes, compared with 27.55 million tonnes during the corresponding period of 2024-25, as reported by Informist. India's annual sugar consumption is estimated at 28-29 million tonnes. Industry sources indicate that sugar mills entered the 2026-27 sugar season with around 3.75 million tonnes of opening stock, the lowest level in more than a decade. Lower production has contributed to the reduced availability, with industry estimates showing sugar production fell 27% to around 28.1 MT in the 2025-26 season, from 35.8 MT in 2021-22. At the same time, consumption has edged up, rising marginally to 28.7 MT from 27.3 MT over the last five seasons. The fortnightly quota system is intended to keep enough sugar in the market while limiting excessive stockpiling and sharp price swings. The government has also asked stakeholders across the sugar supply chain, including soft-drink makers and food-processing companies, to ensure that sugar and sugar-based products remain affordable during the festive season.
