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Centre reduces sugar dealers’ stockholding limit by half
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Thursday, 03 September, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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The Government of India has reduced the stockholding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective September 15, 2026, through November 30, 2026, as part of measures to ensure adequate domestic availability and curb hoarding and speculative trading. The 4,000-quintal limit, which has been in force across the country since August 1, 2026, will now be lowered under the amended provisions.
From September 15, sugar dealers will also not be permitted to hold stocks for more than 30 days from the date of receipt. They will be restricted to maintaining a maximum of 2,000 quintals of sugar at any time and at any location across the country. However, the existing 4,000-quintal limit will continue to apply to Kolkata and its extended metropolitan areas, given the region’s specific market requirements. Kolkata sources sugar primarily from Uttar Pradesh and Maharashtra and serves as a key supply hub for eastern India, including the North-Eastern region.
The government said the revised limits are intended to discourage hoarding, speculative trading and excessive accumulation of sugar stocks, while facilitating the orderly movement of sugar through the supply chain and ensuring continuous availability to consumers at reasonable prices.
The government has also stepped-up monitoring and physical verification of sugar stocks across the country, covering sugar mills, dealers and traders. The exercise has helped identify instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar.
Following these interventions and improved market availability, ex-mill sugar prices have declined by around 20% in recent days. Retail sugar prices have also started showing a downward trend and are expected to reflect the reduction in ex-mill prices.
The government has put in place a mechanism for regular declaration and updating of sugar stocks through the Department of Food & Public Distribution’s online portal. Physical verification of sugar stocks at sugar mills, dealers and traders will continue in the coming weeks.
The government said it will continue to monitor developments in the sugar market and take necessary measures to maintain adequate availability, ensure orderly supplies and support price stability, while allowing genuine trade and distribution activities to continue without disruption.
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