Govt cuts sugar stock limit for dealers to 2,000 quintals from Sept 15

The Centre has reduced the stock holding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective September 15, in a move aimed at curbing hoarding and speculative trading and ensuring adequate availability of sugar at stable prices. The revised limit will remain in force until November 30, 2026. The government had earlier imposed a stock limit of 4,000 quintals on sugar dealers from August 1. Under the new provisions, dealers will not be allowed to hold sugar stocks for more than 30 days from the date of receipt. They will also be prohibited from holding more than 2,000 quintals at any given time or location across the country. 
However, the existing limit of 4,000 quintals will continue to apply to Kolkata and its extended metropolitan areas, considering the region’s specific market requirements. Kolkata sources sugar from Uttar Pradesh and Maharashtra and supplies it to eastern states, including the northeastern region. The government said the measure is intended to prevent excessive accumulation of stocks, discourage speculative trading and facilitate the orderly movement of sugar through the supply chain.
The Centre has also stepped up monitoring and physical verification of sugar stocks at sugar mills, dealers and traders across the country. The exercise has identified instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar. According to the government, the interventions and improved market availability have resulted in ex-mill sugar prices declining by around 20 per cent in recent days. Retail prices have also started showing a downward trend and are expected to follow the decline in ex-mill prices.
The government has put in place a mechanism for regular declaration and updating of sugar stocks through the online portal of the Department of Food and Public Distribution. Physical verification of stocks will continue in the coming weeks.