- India has tightened sugar stock limits as prices hit record highs, with the all-India average ex-mill sugar price rising to Rs 5,400-5,500 per quintal.
- The average retail price of sugar also increased by 13% year-on-year to Rs 52.30 per kg as of August 18.
- The tighter stockholding rule comes amid concerns about sugar availability for the 2026-27 season, which begins on October 1.
- Industry estimates suggest opening stocks for the new season could be between 40-42 lakh tonnes, while some researchers predict lower stocks of 32-35 lakh tonnes.
- Both estimates of opening stocks are below the estimated domestic requirement of around 50 lakh tonnes.
India has tightened sugar stockholding limits to 15 days for dealers using over 10 metric tonnes monthly, effective from September 1 until November 30. This measure comes as sugar prices have surged to record levels, reaching Rs 5,400-5,500 per quintal, a significant increase from Rs 3,900 a year earlier.1
The average retail price has also risen, climbing 13% year-on-year to Rs 52.30 per kg as of August 18, according to Consumer Affairs Ministry data. This price hike is attributed to the seasonal demand surge during festivals like Ganesh Chaturthi, Dussehra, and Diwali, which typically boosts sugar consumption among households and bulk users, including biscuit and confectionery manufacturers.2
Concerns are mounting regarding sugar availability for the 2026-27 season, which begins on October 1. Industry estimates suggest opening stocks could be between 40-42 lakh tonnes, while some researchers predict lower figures of 32-35 lakh tonnes. Both estimates fall short of the estimated domestic requirement of around 50 lakh tonnes for the upcoming season.345
The government's decision to impose tighter stockholding rules aims to manage supply amid these rising prices and demand fluctuations, ensuring that sugar remains accessible during the festive season.
“The all-India average retail price of sugar increased 13% year-on-year to Rs 52.30 per kg as of August 18, reflecting rising costs. Industry estimates suggest opening stocks for the new season may be between 40-42 lakh tonnes, falling short of the domestic requirement of around 50 lakh tonnes.”
