Govt cuts sugar stock holding limit for dealers to 2,000 quintals in Sep 15-Nov 30 festive period
New Delhi: In a bid to ensure adequate availability of sugar in the domestic market and to prevent hoarding and speculative trading of the essential commodity in the festive season, the government on Tuesday announced to reduce the stock holding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective from September 15 till November 30, 2026.
Currently, a stock holding limit of 4,000 quintals on sugar dealers across the country is effective from August 1, 2026.
The government has now taken further measures by reducing the stock holding limit to 2,000 quintals, according to Ministry of Consumer Affairs, Food and Public Distribution.
Within the new deadline, a sugar dealer will not hold any stock for a period exceeding 30 days from the date of receipt of such stock, and will not keep sugar in stock, at any time and in any place throughout the country, in excess of 2,000 quintals.
However, considering the specific market requirements of the region, the stock holding limit will remain at 4,000 quintals for Kolkata and its extended metropolitan areas, said the official statement.
“The measure is aimed at further curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks. It will facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices,” it added.
The statement further said that the Kolkata area is sourcing sugar from Uttar Pradesh and Maharashtra and supplying to the eastern part of the country, including the North-Eastern region.
Therefore, the existing limit of 4,000 quintals has been retained for Kolkata and its extended metropolitan areas.
Moreover, the government said it has undertaken intensive monitoring and physical verification of sugar stocks across the country, covering sugar mills, dealers and traders.
The exercise has helped identify instances of excess holding, non-disclosure, and irregularities in the movement and sale of sugar stocks. As a result of these interventions and improved market availability, ex-mill sugar prices have declined by around 20% in recent days.
Retail prices have also started showing a downward trend and are expected to follow the reduction in ex-mill prices.
Physical verification of sugar stocks across the country, covering sugar mills, dealers and traders, will continue in the coming weeks, said the government.