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Centre imposes sugar stockholding limits from August 1
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Thursday, 30 July, 2026, 08 : 00 AM [IST]
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Our Bureau, New Delhi
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To curb surging prices and ensure adequate market availability, the Central Government has reimposed stock limits on sugar traders following a 15 per cent price spike over the past month.
The restrictions will remain in effect from August 1, 2026, to November 30, 2026. However, supplies under the Public Distribution System (PDS) and government sugar reserves have been exempted from the mandate.
Shankar Thakkar, national secretary CAIT has said that under the new directives, no sugar dealer is permitted to hold a stock exceeding 4,000 quintals.
“The order also explicitly mandates that sugar traders cannot retain any received consignment for more than 30 days. Additionally, all registered dealers are required to regularly update their inventory status on the Department of Food and Public Distribution (DFPD) portal,” said Thakkar.
And to maintain an uninterrupted supply chain and prevent hoarding, the Union Government has empowered state governments to enforce stock limits lower than the central threshold if local conditions warrant.
Meanwhile, Thakar urged the government to halt the diversion of sugarcane for ethanol production to bring domestic prices under control.
“We have repeatedly advised the government against utilising sugarcane for ethanol production, but those warnings were ignored, resulting in continuous price escalation that has now become a major concern for authorities,” Thakkar said.
He added that enforcing an immediate ban or strict capping on ethanol diversion remains the most effective tool to stabilise retail sugar prices.
Thakkar further suggested that stock limits should primarily target large-scale inventory holders, modern retail chains, and multi-store operators, rather than burdening small-scale wholesalers and retail traders.
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