Sugar stock rules change from October 15: What dealers need to know

With the festive season approaching, the government has tightened rules on sugar stocks to ensure adequate supplies at reasonable prices. Sugar dealers will now be allowed to hold stocks for a maximum of 15 days, with a cap on the quantity they can keep.SUGAR DEALERS CAN HOLD STOCK FOR 15 DAYS

The Central Government has reduced the stock holding period for sugar dealers to 15 days from the date they receive the stock. The maximum quantity that can be held at any given time has been fixed at 1,000 quintals across most parts of the country.

The revised rules will be in force from October 15 to November 30, 2026.

However, Kolkata and its extended metropolitan area, along with Assam, have been given an exemption. Dealers in these areas will be allowed to hold up to 2,000 quintals of sugar.

The government said the move is aimed at preventing unnecessary accumulation of sugar in the supply chain and curbing hoarding and speculation. It also wants to ensure a smooth supply of sugar from mills to consumers through dealers.

Also, it said average retail sugar prices have fallen by around 15% from their highest level in August.

Ex-mill sugar prices have also declined by around 28% and have remained stable for the past three weeks.

The government expects the fall in ex-mill prices to eventually reach consumers through the supply chain. It has urged wholesalers and retailers to immediately pass on the benefit of lower prices to consumers.

The new sugar crushing season began on October 1. The government has advised sugar mills to begin crushing based on the agricultural and weather conditions in their respective regions.

State governments have also been asked to take suitable steps on crushing operations, keeping local field conditions in mind.

The government said it will continue to monitor the impact of uneven and low rainfall caused by El Nio on sugarcane in some sugar-producing regions.

It said necessary steps will be taken to balance domestic sugar availability, consumer interests and the interests of sugarcane farmers.FARMERS AND CONSUMERS REMAIN KEY FOCUS

The government reiterated that sugarcane farmers and consumers are the two key focus areas of the country's sugar policy.

While ensuring fair returns for farmers remains a priority, the government also aims to protect consumers from unreasonable price increases and maintain adequate sugar supplies across the country.- Ends