New Delhi: The government has halved the amount of sugar that dealers can hold, reducing the nationwide stock limit from 4,000 quintals to 2,000 quintals from September 15 in an effort to curb hoarding and keep supplies and prices stable.
The revised limit will remain in force until November 30, 2026. A 4,000-quintal ceiling has been applicable to sugar dealers across the country since August 1.
Under the amended rules, dealers will not be allowed to keep sugar for more than 30 days from the date they receive it. They will also be barred from holding more than 2,000 quintals at any time or location in the country.
Kolkata retains higher sugar stock limit
Kolkata and its extended metropolitan areas have been exempted from the lower ceiling. Dealers in these areas will continue to be allowed to hold up to 4,000 quintals.
The government said the exception had been retained because Kolkata serves as an important distribution centre for eastern India. Sugar brought to the city from Uttar Pradesh and Maharashtra is supplied to eastern states, including the North-Eastern region.
The lower limit elsewhere is intended to prevent traders from accumulating excessive stocks, discourage speculative trading and allow sugar to move more smoothly through the supply chain. The government expects the measure to support continuous availability for consumers at reasonable prices.
Stock inspections identify irregularities
Authorities have stepped up monitoring and physical verification of sugar stocks held by mills, dealers and traders across the country. According to the government, the checks have uncovered cases involving excess stocks, failure to declare holdings and irregularities in the movement and sale of sugar.
Ex-mill sugar prices have fallen by around 20% in recent days following the interventions and improved market availability, the government said. Retail prices have also begun to decline and are expected to reflect the fall in ex-mill prices.
Online sugar stock declarations to continue
Sugar mills, dealers and traders are required to regularly declare and update their stocks through the Department of Food and Public Distribution’s online portal. Physical checks will continue in the coming weeks.
The government said it would continue monitoring the domestic sugar market to maintain adequate supplies and price stability. It added that genuine trade and distribution activities should continue without disruption while the restrictions are enforced.
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