New Delhi: The Centre has reduced the maximum stock of sugar that dealers can hold from 4,000 quintals to 2,000 quintals, in a move aimed at curbing hoarding, speculative trading and excessive accumulation of stocks.
The revised limit will come into effect from September 15 and remain in force until November 30, 2026, the Ministry of Consumer Affairs, Food and Public Distribution said.
Under the new rules, sugar dealers will not be allowed to hold stocks for more than 30 days from the date of receipt. They will also be prohibited from keeping more than 2,000 quintals of sugar at any location across the country.
The government 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 mainly from Uttar Pradesh and Maharashtra and supplies it to eastern India, including the northeastern states. The higher limit has therefore been retained to ensure smooth movement through the regional supply chain.
The Centre said the measure is intended to discourage speculative trading and prevent excessive accumulation, while ensuring adequate supplies and stable prices for consumers.
The government has also intensified monitoring and physical verification of sugar stocks held by mills, dealers and traders across the country.
The exercise has reportedly detected instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar.
According to the government, improved market availability and these interventions have contributed to a nearly 20% decline in ex-mill sugar prices in recent days. Retail prices have also started showing a downward trend and are expected to follow the reduction in ex-mill prices.
The government will continue monitoring sugar stocks through its online declaration system and conduct physical verification in the coming weeks.
It said the measures are aimed at maintaining adequate availability, orderly supplies and price stability, while ensuring that genuine sugar trade and distribution activities continue without disruption.
