The government has further tightened its grip on sugar stockpiling, cutting the maximum quantity dealers can hold from 4,000 quintals to 2,000 quintals, effective September 15. The move is aimed at curbing hoarding and speculative trading while keeping enough supply flowing through the domestic market.
The Ministry of Consumer Affairs, Food and Public Distribution announced the revised cap on Tuesday, saying it will stay in force until November 30, 2026. Under the new rules, dealers will not be permitted to hold sugar stocks for longer than 30 days from the date of receipt, and at no point can they store more than 2,000 quintals at any single location anywhere in the country.
Kolkata and its surrounding metropolitan region, however, have been carved out as an exception. The city will continue to operate under the higher 4,000-quintal limit, given its role as a supply hub — Kolkata draws sugar from Uttar Pradesh and Maharashtra before distributing it across eastern India, including the northeast.
This latest cut follows an earlier tightening on August 1, when the government first imposed a 4,000-quintal cap nationwide. Officials say the additional reduction reflects a push to prevent excess accumulation of stock and keep prices stable.
The stock-limit policy has been paired with stepped-up enforcement. Authorities have been conducting physical verification of sugar stocks at mills, dealers, and traders across the country, an exercise that has already turned up cases of excess stockholding, non-disclosure, and irregularities in how sugar is being moved and sold. That verification process is set to continue in the coming weeks.
According to the ministry, the combination of tighter stock limits and improved market availability has already had an effect: ex-mill sugar prices have fallen by roughly 20% in recent days, with retail prices now starting to trend downward as well.
To keep tabs on compliance, the government has also set up a system requiring dealers to regularly declare and update their sugar stock levels through an online portal run by the Department of Food and Public Distribution.
Officials said they would continue monitoring the sugar market closely and take further steps as needed to ensure adequate supply, orderly distribution, and stable prices — while stressing that legitimate trade and distribution activity should remain unaffected by the crackdown.