The government has reduced the sugar stock holding limit for dealers across India from 4,000 quintals to 2,000 quintals, effective September 15, 2026. The revised limit will remain in force until November 30, 2026, as part of measures to prevent hoarding and speculative trading and maintain sugar availability and price stability.
The current 4,000 quintal limit came into effect on August 1, 2026. Under the revised rules, dealers will also be prohibited from keeping sugar for more than 30 days from the date they receive the stock.
Kolkata gets separate stock limit
The 2,000 quintal ceiling will apply to dealers across the country, but Kolkata and its extended metropolitan areas will continue to have a 4,000 quintal limit. The government said this exception reflects the region’s specific supply requirements.
Kolkata sources sugar from Uttar Pradesh and Maharashtra and distributes it to eastern India, including the North-Eastern region. The existing higher limit has therefore been retained for the Kolkata area.
The government said the tighter sugar stock holding limit is intended to prevent excessive accumulation, discourage speculative activity and improve the movement of sugar through the supply chain. The measure is also aimed at ensuring continuous supplies to consumers at reasonable prices.
Stock monitoring continues
The government has been conducting intensive monitoring and physical verification of sugar stocks involving mills, dealers and traders across the country. The exercise has identified cases involving excess stock holdings, non-disclosure and irregularities in the movement and sale of sugar.
According to the Press Information Bureau (PIB), ex-mill sugar prices have fallen by around 20% in recent days following the interventions and improved market availability. Retail prices have also started declining and are expected to follow the movement in ex-mill prices.
The Department of Food & Public Distribution has also put in place an online system for regular declaration and updating of sugar stocks. Physical verification will continue in the coming weeks as the government monitors availability, supplies and prices while seeking to ensure that genuine trade and distribution activities continue without disruption.
Source: PIB.
