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

The government has cut the permissible stock of sugar held by dealers to 1,000 quintals from October 15, tightening inventory norms ahead of the festive season in an effort to keep retail prices under check.

The Department of Food and Public Distribution issued a gazette notification on Tuesday to implement the revised norms, which will remain in force until November 30, 2026.

The government has also reduced the permitted stock-holding period for dealers to 15 days. The measures will apply across the country, except Kolkata and its extended metropolitan areas and Assam.


The latest move follows two earlier reductions in dealer stock limits this year. In August, the government had capped inventories at 4,000 quintals from August 1 to November 30, while limiting the holding period to 30 days from the date of receipt. The ceiling was subsequently lowered to 2,000 quintals from September 15.

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The food ministry had said the tighter norms were aimed at preventing unnecessary accumulation of sugar in the distribution chain and ensuring smoother movement from mills to dealers and consumers. The restrictions are also intended to curb hoarding and speculative trading.

The government has been tightening controls as it seeks to ensure adequate supplies reach consumers during the festival period. Under the revised framework, dealers will have to operate with lower inventories and turn over stocks within a shorter period.

The sugar season runs from October to September.

The latest intervention comes as sugar prices have eased from their August levels. Earlier this month, the ministry said average retail sugar prices had declined 15% from their August peak and were expected to fall further.

Ex-mill sugar prices have dropped about 28% and remained stable over the last three weeks, the ministry said.

The revised stock norms will take effect on October 15 and remain applicable through November 30.