Government steps curb hoarding, bring down sugar prices nationwide
New Delhi, August 28 – The Ministry of Consumer Affairs, Food and Public Distribution disclosed that ex‑mill sugar rates have dropped by about 20 percent, and the easing is now visible in retail markets as well. The ministry attributed the recent price correction to a series of governmental actions aimed at eliminating hoarding and speculative trading.
Officials noted that price changes at the production level take time to ripple through the supply chain, so additional retail price relief can be expected soon.
The ministry has maintained constant surveillance of sugar pricing, stock levels and distribution across the nation. After a rapid price increase, authorities implemented multiple intervention measures, whose effects are now materialising.
The simultaneous decline in wholesale and retail prices signals that the earlier surge was not caused by a genuine shortage but by artificial market manipulation, including hoarding and speculative buying.
A physical verification campaign of sugar mill inventories uncovered that several mills possessed reserves exceeding their reported figures, confirming that the country’s overall sugar stock is ample.
The investigation also highlighted instances of "short selling," where mills released less sugar than their monthly quota, thereby creating an artificial supply crunch despite sufficient stock.
Furthermore, the ministry observed that in many cases, buyers would purchase sugar at the beginning of the month but postpone collection until the month’s end, fostering a false perception of scarcity. To remedy this, a fortnight‑based allocation mechanism will replace the current monthly quota from September onward.
The new framework mandates that mills allocate at least 40 percent of their assigned quantity during the first week of the fortnight, with the remaining balance released in the second week. Additionally, any sugar sold must be dispatched from the mill site within seven days.
These measures are intended to accelerate the flow of sugar from mills to wholesale dealers and finally to consumers, curbing hoarding, speculation and short‑selling practices. Large purchasers have also been advised to keep stock levels in line with actual demand.
The upcoming financial session begins on October 15, with projected sugar production of over 1 million metric tonnes in October. Mills have been allowed to sell the October crop without additional constraints to ensure swift market availability.
November’s outlook anticipates around 4.5 million metric tonnes of sugar, providing a robust buffer that should help stabilise prices.
The ministry reiterated that sugar availability remains high and urged consumers not to panic‑buy. The government will continue to monitor the market closely and intervene as needed.