Government halves sugar stock limit for dealers ahead of festive season

The government on Tuesday tightened restrictions on sugar stocks held by dealers, cutting the nationwide limit by half to 2,000 quintals from 4,000 quintals in a move aimed at preventing hoarding and speculative trading ahead of the festive season.

The revised limit will take effect from 15 September and remain in force until 30 November 2026, the Ministry of Consumer Affairs, Food and Public Distribution said.

Under the new rules, dealers will not be allowed to hold sugar for more than 30 days from the date of receipt. At no point and at no location across the country can a dealer stock more than 2,000 quintals of sugar.

However, the existing 4,000-quintal limit will continue to apply to dealers in Kolkata and its extended metropolitan areas, taking into account the region’s specific supply requirements.

The government said Kolkata serves as an important sourcing and distribution hub, receiving sugar from Uttar Pradesh and Maharashtra and supplying markets across eastern India, including the northeastern states. Authorities have therefore decided to retain the higher stock limit in the region.

The move comes as the government steps up efforts to ensure sufficient sugar supplies during the festive period and prevent artificial shortages caused by excessive stockpiling.

“The measure is aimed at further curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks,” the ministry said, adding that the measure would help ensure the orderly movement of sugar through the supply chain and maintain availability at reasonable prices.

The government has also intensified monitoring and physical verification of sugar stocks at mills, dealers and traders across the country. The inspections have uncovered instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar.

According to the ministry, the enforcement measures, coupled with improved market availability, have helped bring down ex-mill sugar prices by around 20 per cent in recent days.

Retail prices have also begun to decline and are expected to reflect the fall in ex-mill prices in the coming days.

Physical verification of sugar stocks will continue across the country in the weeks ahead, the government said, signalling tighter scrutiny of the commodity market as demand rises during the festive season.

With IANS inputs