The government has taken another step to prevent sugar hoarding and speculation, reducing the maximum stock that sugar dealers can hold from 4,000 quintals to 2,000 quintals.
The new limit will come into effect from September 15, 2026, and remain in place until November 30, 2026. The decision has been taken to maintain adequate availability of sugar in the domestic market and stabilise prices.
From September 15, no sugar dealer will be allowed to hold sugar for more than 30 days from the date of receipt.
In addition, no sugar dealer will be permitted to stock more than 2,000 quintals of sugar anywhere in the country at any given time.
The current stock limit of 4,000 quintals has been effective since August 1, 2026.
The stock limit for Kolkata and its surrounding metropolitan areas will remain at 4,000 quintals.
According to the government, Kolkata imports sugar from Uttar Pradesh and Maharashtra, which supplies sugar to eastern India and the northeastern states. Therefore, the existing limit has been retained for the region.
The government said monitoring and physical inspections of sugar mills, dealers and traders are being conducted across the country.
These inspections have revealed instances of stocks being held beyond the prescribed limits, concealment of stock information, and irregularities in the movement and sale of sugar.
According to the ministry, these measures, along with improved market availability, have led to a decline of approximately 20% in ex-mill sugar prices in recent days. Retail prices are also showing a downward trend, with further reductions expected.
A system for regular declaration and updating of sugar stocks has already been established on the online portal of the Department of Food and Public Distribution.
The government said physical stock inspections at mills, dealers and traders will continue in the coming weeks. It has also assured that physical trade and distribution will continue without interruption.
