Government halves sugar stock limit for dealers to curb hoarding

On Tuesday, the government reduced the sugar stock holding limit for dealers to 2,000 quintals from September 15 to November 30, aiming to maintain adequate availability in the domestic market and deter hoarding and speculative trading. Retail prices have decreased to approximately Rs 63 per kg, although they remain high despite ex-mill prices falling by over 20% following government interventions.

Previously, the stock holding limit for sugar dealers nationwide stood at 4,000 quintals. Under the new regulation, a sugar dealer cannot retain any stock for more than 30 days from the date they receive the sugar consignment, nor can they maintain more than 2,000 quintals of sugar at any given time. Authorities anticipate that this reduction will promote a more organized flow of sugar through the supply chain, ensuring consistent availability to consumers at affordable prices.

To achieve these objectives, the government is conducting thorough monitoring and physical verification of sugar stocks across mills, dealers, and traders.