The Central Government has reduced the stockholding limit for sugar dealers from 4,000 quintals to 2,000 quintals to curb hoarding, speculative trading and rising domestic prices ahead of the festive season. The revised limit will come into effect from September 15, 2026, and remain applicable until November 30, 2026. The measure is intended to ensure adequate sugar supplies in the domestic market as demand is expected to increase during the festive period.

Under the revised provisions, sugar dealers will not be permitted to hold stocks for more than 30 days from the date of receipt. Their total inventory will also be capped at 2,000 quintals during the specified period. The government expects the restrictions to promote faster movement of sugar through the supply chain and prevent excessive accumulation by traders, helping maintain regular availability for consumers.

An exception has been made for Kolkata and its extended metropolitan areas, where the existing stockholding limit of 4,000 quintals will continue. The government has cited regional supply requirements for the provision, noting that Kolkata sources sugar from Uttar Pradesh and Maharashtra for distribution across eastern and north-eastern markets. The higher limit is intended to support smooth regional supplies while maintaining controls against excessive stock accumulation.

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The government’s measures to monitor sugar prices since the first week of August have reportedly contributed to a decline of around 20 per cent in ex-mill sugar prices. With consumption expected to rise during the festive season, authorities have now opted for tighter stockholding restrictions. The government has also established a mechanism through the Department of Food and Public Distribution’s online portal for regular declaration and updating of sugar stocks.

Earlier, the government permitted duty-free imports of one million tonnes of raw sugar after domestic sugar prices reached a 16-year high. The processed sugar produced from the imported raw sugar is required to be supplied to the domestic market by October 31, 2026. The import decision has drawn criticism from political circles and experts, particularly amid concerns over government policy decisions relating to domestic sugar availability.

The government also permitted the export of 800,000 tonnes of sugar this year despite lower domestic production, a decision that has contributed to debate over sugar supply management. The latest stockholding restrictions are part of the government’s broader effort to regulate the domestic market and keep prices under control. Authorities said they will continue monitoring developments in the sugar market and take measures aimed at ensuring availability to consumers at reasonable prices.

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