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

The government has reduced the stock holding limit for sugar dealers to 2,000 quintals from 4,000 quintals, effective September 15, in a bid to curb hoarding and speculative trading.

The revised limit will remain in force till November 30, 2026, the Ministry of Consumer Affairs, Food and Public Distribution said in a statement on Tuesday.

Sugar dealers will not be allowed to hold any stock for more than 30 days from the date of receipt.

They will also not be permitted to keep more than 2,000 quintals of sugar at any time and at any place across the country.

The stock limit, however, will remain at 4,000 quintals for Kolkata and its extended metropolitan areas, considering the specific market requirements of the region.

The ministry said Kolkata sources sugar from Uttar Pradesh and Maharashtra and supplies it to eastern India, including the northeastern region.

The government had imposed a 4,000-quintal stock limit on sugar dealers across the country from August 1, 2026.

The government has also stepped up 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, it said.

Following these interventions and improved market availability, ex-mill sugar prices have declined by around 20% in recent days, according to the ministry.

Retail sugar prices have also started showing a downward trend and are expected to follow the reduction in ex-mill prices, it said.

The government last month allowed duty-free import of up to 10 lakh tonnes of raw sugar till October 31, 2026, amid efforts to augment domestic supplies.

The industry, in a recent meeting, told the ministries concerned that the earlier deadline was not feasible, citing congestion at Brazilian ports and a shipment time of around 40 days for cargo to reach India after allocation of import quantities.

It later extended the timeline for sugar mills to process imported raw sugar and sell it in the domestic market, following industry concerns over shipment delays and port congestion in Brazil.

The Directorate General of Foreign Trade (DGFT) said raw sugar imported under the announced tariff rate quota (TRQ) must be converted into white/refined sugar and sold domestically within two months from the date of filing of the bill of entry.

According to a PTI report, ex-mill sugar prices fell nearly 30% to ₹47 per kg on Monday, from a peak of ₹67 per kg on August 18, but the drop has yet to filter down to retail shelves.

A retailer typically holds 10-15 bags of sugar, each weighing 50 kg. Only once fresh stock is procured at the lower rate will retail prices adjust accordingly.

"It takes at least ten days to reflect changes in the retail price," PTI quoted an industry source as saying.