Business · India Bureau
India slashes sugar inventory rules ahead of festival season
The government has reduced mandatory sugar stock holding periods to 15 days as the new crushing season commences, aimed at managing supply during peak festive demand. The move comes as sugarcane prices have been set at ₹365 per quintal for the 2026-27 season.
LSN India ·
India's sugar sector is adjusting its inventory management framework as the new sugar season began on October 1, with authorities cutting the maximum period that mills and dealers must hold stocks to just 15 days. The compressed timeline reflects government efforts to ensure adequate sugar availability during the year-end festive period, when domestic consumption typically surges.
The Fair and Remunerative Price (FRP) for sugarcane has been set at ₹365 per quintal for the 2026-27 season, based on a basic recovery rate of 10.25 per cent. This pricing framework aims to balance farmer interests while maintaining production incentives across the industry.
The shorter stock-holding window is expected to facilitate faster movement of sugar through distribution channels, preventing artificial scarcities or hoarding during high-demand periods. Industry observers anticipate the measure will help stabilize retail prices while maintaining supply chain fluidity.
With festival purchases typically beginning in October and peaking through November-December, the reduced inventory holding period aligns government policy with seasonal consumption patterns. The combination of improved pricing for sugarcane and tighter inventory controls is intended to support both producer and consumer interests during this critical commercial period.