New Delhi: The government has reduced the stock holding limit for sugar dealers to 2,000 quintals from 4,000 quintals, with the revised limit set to take effect from September 15 and remain in force until November 30, 2026.
The Ministry of Consumer Affairs, Food and Public Distribution said the measure is aimed at improving sugar availability in the domestic market and discouraging excessive stock accumulation and speculative trading.
The existing stock limit of 4,000 quintals has been in force since August 1. Under the revised provisions, dealers will not be allowed to hold sugar for more than 30 days from the date of receipt or maintain stocks exceeding 2,000 quintals at any time or place across the country.
Kolkata and its extended metropolitan areas have been exempted from the lower ceiling and will continue to have a stock limit of 4,000 quintals.
The government said the higher limit has been retained for Kolkata because the city sources sugar from Uttar Pradesh and Maharashtra and serves markets across eastern India, including the North-Eastern region.
The ministry said the revised limit is intended to facilitate the orderly movement of sugar through the supply chain and maintain adequate availability for consumers at reasonable prices.
The government has also intensified monitoring and physical verification of sugar stocks held by mills, dealers and traders. According to the ministry, the exercise has detected instances of excess stock holding, non-disclosure of stocks and irregularities in the movement and sale of sugar.
The ministry said ex-mill sugar prices have fallen by around 20 per cent in recent days following government interventions and improved market availability. It said retail sugar prices have also started showing a downward trend and are expected to reflect the decline in ex-mill prices.
Sugar mills, dealers and traders are required to regularly declare and update their stock positions through the Department of Food and Public Distribution’s online portal.
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