To control sugar prices and curb hoarding and speculative trading, the Central Government has reduced the stockholding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective from September 15, 2026, until November 30, 2026. The measure aims to ensure adequate availability of sugar in the domestic market. However, the existing 4,000-quintal limit will remain in place for Kolkata.
The government’s efforts to manage sugar prices since the first week of August have yielded results, with ex-mill sugar prices reportedly declining by around 20% following increased monitoring.
As the festive season approaches, when demand for sugar typically rises, the further reduction in the stock limit to 2,000 quintals is expected to help lower domestic sugar prices. Under the amended provisions, dealers will also be prohibited from holding sugar for more than 30 days from the date of receipt.
