The Centre has halved the stockholding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective September 15, as it steps up efforts to prevent hoarding and speculative trading ahead of the festive season.
The revised limit will remain in force until November 30, 2026, the Ministry of Consumer Affairs, Food and Public Distribution said on Tuesday. The government had introduced the existing 4,000-quintal limit from August 1.
Under the new rules, dealers will not be allowed to hold more than 2,000 quintals of sugar at any time or at any location across the country. They will also be prohibited from keeping sugar stocks for more than 30 days from the date of receipt.
The government said the decision follows intensive monitoring and physical verification of sugar stocks held by mills, dealers and traders. The exercise reportedly identified cases of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar.
The Centre said the tighter limit is intended to prevent excessive accumulation of stocks, discourage speculative buying and ensure the smooth movement of sugar through the supply chain. The broader objective is to maintain adequate domestic availability and keep prices at reasonable levels for consumers.
However, Kolkata and its extended metropolitan areas have been exempted from the reduction. Dealers in the region will continue to be allowed to hold up to 4,000 quintals. The government cited Kolkata's role as a major distribution centre, with the city sourcing sugar from Uttar Pradesh and Maharashtra and supplying markets across eastern India, including the Northeast.
The move comes after sugar prices rose sharply in recent months, prompting the government to introduce several measures to improve domestic availability. These include stock limits and measures to increase supplies ahead of the festival season.
The Centre has also said that physical verification of sugar stocks will continue in the coming weeks, while dealers will be required to regularly declare and update their stock positions through the government's online monitoring system.
The latest order represents a significant tightening of restrictions within just six weeks of the earlier 4,000-quintal cap. The government expects the measure to discourage hoarding and help ensure that sugar remains available in the market as demand rises during the festive period.
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