NEW DELHI: 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.
Starting September 15, 2026, new regulations will govern sugar dealers’ stock management. Dealers will not be allowed to hold sugar for more than 30 days from the date of receipt, and their inventory cannot exceed 2,000 quintals nationwide.
However, due to regional market requirements, an exception allows Kolkata and its extended metropolitan areas to maintain a higher limit of 4,000 quintals. This provision acknowledges Kolkata’s role in sourcing sugar from Uttar Pradesh and Maharashtra to supply the eastern and north-eastern regions of the country, ensuring effective market operations while preventing excessive stock accumulation.
These measures will facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices.
Previously, the government allowed the duty-free import of one million tonnes of raw sugar after domestic sugar prices reached a 16-year high. The processed sugar obtained from the imported raw sugar must be supplied to the domestic market by October 31, 2026.
The decision to allow imports has faced sharp criticism from political circles and experts, who have highlighted potential government policy missteps. Despite lower domestic sugar production, the government permitted the export of 800,000 tonnes of sugar to the international market this year.
In its announcement, the government stated that it is closely monitoring developments in the sugar market and has implemented a mechanism for regularly declaring and updating sugar stocks through the Department of Food and Public Distribution’s online portal.