Centre Cuts Sugar Stock Holding Period to 15 Days from October 15, 2026

The Centre has reduced the period for which sugar dealers can hold stocks from 30 days to 15 days, with the new rule taking effect from October 15, 2026, according to news reports.  

The restriction will remain in place until November 30, 2026, covering the main festive demand period. Dealers will also be limited to 1,000 quintals of sugar at any time and at any location across the country.  

The changes were announced on October 1, 2026, coinciding with the start of the new sugar season. 

Kolkata, Assam Get Higher Limit 

A 2,000-quintal limit will apply to Kolkata, its extended metropolitan areas and Assam. The Government cited regional supply requirements, transport constraints, and Kolkata's role as a supply point for eastern and northeastern markets. 

The shorter holding period and quantity cap are intended to prevent stocks from remaining with dealers for extended periods. The rules cover both the duration and volume of sugar held within the distribution chain. 

Sugar Prices Below August Peak 

Average retail sugar prices have declined 15% from their August peak, while ex-mill prices are down around 28%, according to the Government. Ex-mill prices have remained stable over the past three weeks. 

The Government has asked mills, dealers, wholesalers and retailers to keep stocks moving and pass on lower ex-mill prices to consumers. Sugar consumption typically rises between August and November due to festivals including Ganesh Chaturthi, Dussehra and Diwali. 

Import and Export Measures 

The stockholding restrictions follow other measures taken this year over domestic sugar availability. In May, the Government prohibited exports of raw, white, and refined sugar until September 30. 

In August, it permitted imports of 1 million tonnes of raw sugar at zero duty. India normally imposes a 100% duty on raw sugar imports. Imported raw sugar was later allowed to be refined and sold domestically within two months of filing the Bill of Entry, while the October 31 import cut-off remained unchanged. 

Cane Price and Supply Monitoring 

The Fair and Remunerative Price for sugarcane for 2026-27 has been fixed at ₹365 per quintal at a basic recovery rate of 10.25%. 

The Government will monitor the impact of uneven rainfall and El Niño conditions on sugarcane in producing regions. Mills have been advised to begin crushing according to local agro-climatic conditions. 

The revised stock limits are scheduled to remain in force through November 30, covering the period when sugar demand typically increases during the festival season. 

Read More: UPI Daily Transactions Crossed 800 Million for First Time in September 2026! 

Conclusion  

The revised rules will limit both the quantity and duration of sugar stocks held by dealers. The measures will remain in force until November 30, 2026. 

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