As per the Ministry of Consumer Affairs, Food & Public Distribution, the Government has slashed the sugar stockholding limit for dealers by 50 percent from the current limit. The new limit, effective from September 15, 2026, till November 30, 2026, will bring down the limit from 4,000 quintals to 2,000 quintals.
The measure aims to ensure adequate availability of sugar in the domestic market and prevent hoarding by sugar dealers. The Government earlier claimed that short selling is a major cause of the steep hike in sugar prices despite sufficient sugar stocks.
Short selling is the practice by sugar mills in which they sell less sugar than the quantity allocated to them.
The Ministry listed provisions for sugar dealers to be in effect from September 15, 2026:
* Stocks must not be stocked for a period exceeding 30 days from the date of receipt of such stock.
* Stocks of more than 2,000 quintals must not be stocked at any time, in any part of the country.
* The limit of 4,000 quintals is permissible to be stocked in Kolkata and its extended metropolitan areas, considering the specific market requirements of the region. This provision applies to Kolkata and the extended region because it procures sugar stocks from Uttar Pradesh and Maharashtra and supplies them to the Eastern region of the country, including North-East India.
By discouraging speculative trading and curbing excessive accumulation of stocks, the move ensures a smooth flow of sugar through the supply chain to facilitate its availability to consumers at reasonable prices, the Government explains.
The Ministry says that the Government has intensified the monitoring of sugar stocks to prevent non-disclosure of stocks and other irregularities. “The Government has undertaken intensive monitoring and physical verification of sugar stocks across the country, covering sugar mills, dealers and traders. The exercise has helped identify instances of excess holding, non-disclosure and irregularities in the movement and sale of sugar stocks.”
Ex-mill sugar prices came down by around 20 percent on August 28, 2026, following the Government’s intervention. Retail prices, however, remain elevated by 37 percent, from Rs 46.02 per kg last year to Rs 63 per kg this year.
Moreover, sugar dealers can put updates regarding their stocks through the Department of Food & Public Distribution’s online portal.
