Sugar dealers’ stock limit cut to 2,000 quintals from September 15

The government has cut the stock holding limit for sugar dealers to 2,000 quintals from 4,000 quintals, effective September 15, in a move aimed at curbing hoarding and speculative trading and ensuring adequate supplies in the domestic market.

The revised limit will remain in force until November 30, 2026, the Ministry of Consumer Affairs, Food and Public Distribution said on Tuesday.

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Under the revised provisions, sugar dealers will not be allowed to hold stocks for more than 30 days from the date of receipt. They will also be barred from keeping more than 2,000 quintals of sugar at any time and at any location across the country.

The government, however, has retained the existing 4,000-quintal limit for Kolkata and its extended metropolitan areas, citing the region's specific supply requirements.

Kolkata sources sugar from Uttar Pradesh and Maharashtra and supplies it to eastern India, including the northeastern region. The government said the higher limit would therefore be maintained to facilitate the movement of sugar through the region's supply chain.

The government had introduced a 4,000-quintal stock holding limit for sugar dealers across the country from August 1. The further reduction comes as authorities step up efforts to prevent excessive accumulation of stocks and maintain price stability.

The measure is intended to discourage hoarding and speculative activity while ensuring the orderly movement of sugar through the supply chain and its continued availability to consumers at reasonable prices.

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The government has also intensified monitoring and physical verification of sugar stocks across the country, covering sugar mills, dealers and traders.

The exercise has identified instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar, the ministry said.

The government said the measures, along with improved market availability, have helped bring down ex-mill sugar prices by around 20% in recent days. Retail prices have also begun showing a downward trend and are expected to follow the decline in ex-mill prices.

Authorities have also put in place a mechanism for regular declaration and updating of sugar stocks through the Department of Food and Public Distribution's online portal.

Physical verification of sugar stocks at mills, dealers and traders will continue in the coming weeks, the government said.

The government said it would continue to monitor developments in the sugar market and take steps to maintain adequate availability, orderly supplies and price stability, while ensuring that genuine trade and distribution activities remain unaffected.