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The government has issued a notification reducing the stock holding limit for sugar dealers to 1,000 quintals, effective from October 15 to November 30, as part of its efforts to control retail prices of the sweetener during the festival period.
On October 1, the food ministry had said that the government has reduced the stock holding period for sugar dealers to 15 days and fixed the stock holding limit at 1,000 quintals, with effect from 15 October to November 30, 2026, except in Kolkata and its extended metropolitan areas and the State of Assam.
The Department of Food and Public Distribution on Tuesday issued a gazette notification to implement this decision, which will come into effect from October 15.
In August, the ministry imposed a stock-holding limit of 4,000 quintals on sugar dealers, applicable from August 1 to November 30, along with a maximum holding period of 30 days from the date of receipt. The limit was later tightened to 2,000 quintals from September 15.
"The revised norms are aimed at ensuring that sugar is not unnecessarily accumulated in the distribution chain and that supplies move smoothly from sugar mills through dealers and ultimately reach the end consumer," the ministry had said.
The reduction in the stock-holding limit aims to curb hoarding, discourage speculative trading, and prevent dealers from accumulating sugar stocks.
"By limiting the quantity and duration for which sugar can be held, the Government seeks to facilitate an orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices," the ministry had said.
Sugar season runs from October to September.
Earlier this month, the ministry said that the average retail sugar prices have declined by 15 per cent from their August peak and are expected to decline further. Ex-mill sugar prices have declined by about 28 per cent and have remained stable over the last three weeks, it added.
