New Delhi: Average retail sugar prices have declined 15 per cent from their August peak, while ex-mill sugar prices have fallen by around 28 per cent and remained stable over the past three weeks, the government said on Thursday, announcing tighter stock-holding norms for sugar dealers to ensure adequate availability during the festive season.
The government said average retail sugar prices have declined by 15 per cent from their August peak and are expected to fall further as the benefit of lower ex-mill prices passes through the supply chain. Ex-mill sugar prices have declined by approximately 28 per cent and have remained stable over the last three weeks.
According to the government, the decline in prices reflects the impact of various measures taken to ensure adequate availability of sugar and facilitate its orderly movement through the market.
To prevent hoarding and ensure smooth supplies, the government has reduced the stock-holding period for sugar dealers to 15 days and fixed the stock-holding limit at 1,000 quintals. The revised norms will be effective from October 15 to November 30, 2026.
Under the new provisions, sugar dealers will not be permitted to hold sugar stocks for more than 15 days from the date of receipt. They will also not be allowed to hold sugar stocks exceeding 1,000 quintals at any time and at any place across the country.
However, considering specific regional market requirements, the stock-holding limit has been fixed at 2,000 quintals for Kolkata and its extended metropolitan areas as well as the state of Assam.
The government said Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to eastern India, including the North-Eastern region. The higher limit for Assam has been provided in view of geographical constraints, transportation logistics and consumer interests in the North-East.
The revised norms are aimed at ensuring that sugar is not unnecessarily accumulated within the distribution chain and that supplies move smoothly from sugar mills through dealers to consumers.
The measure is intended to further curb hoarding, discourage speculative trading and prevent accumulation of sugar stocks by dealers.
The government said limiting both the quantity and duration of stock holding will facilitate orderly movement of sugar through the supply chain and help maintain continuous availability of the commodity at reasonable prices.
(IANS)
