India reduces sugar stock limits for dealers to curb hoarding

The Indian government has reduced the sugar stock holding limit for dealers from 4,000 quintals to 2,000 quintals, effective from September 15 to November 30, 2026. This measure aims to prevent hoarding and speculative trading during the upcoming festive season and to ensure adequate supply and price stability.

Under the new regulations, dealers are prohibited from holding sugar for more than 30 days from the date of receipt. An exception has been made for Kolkata and its metropolitan areas, where the 4,000-quintal limit remains due to its role as a major distribution hub for eastern and northeastern India.

In Madhya Pradesh, state authorities have implemented similar strictures, directing collectors to monitor dealers and wholesale consumers. Wholesale users consuming at least 10 metric tonnes monthly are restricted to a 15-day holding period. Meanwhile, in Gujarat, the government has extended deadlines for Public Distribution System (PDS) challans to ensure subsidized sugar reaches Antyodaya and BPL cardholders during the festive period.

The move follows a significant rise in retail sugar prices, which saw an all-India average increase of 37 per cent year-on-year. While retail prices remain elevated, some reports indicate a decline in ex-mill prices at the mill level.