Govt. caps sugar stock limit for dealers to 1,000 quintals ahead of festive season
The Food Ministry said the objective of the amended rules was to “ensure that there is no unnecessary accumulation of sugar in the distribution chain” and that the supply of sugar from mills through dealers to the consumer remained “smooth”
On Thursday, October 1, 2026, the government imposed a new restriction on sugar stock holdings for dealers. Effective from October 15 to November 30, dealers will be permitted to hold only 1,000 quintals of sugar at any given time. This measure, announced by the Food Ministry, aims to ensure adequate supplies and reasonable prices during the festive season.
The restriction does not apply to Kolkata and Assam, where the limit is set at 2,000 quintals each. The government hopes that this measure will promote a smooth flow of sugar through the supply chain and prevent unnecessary accumulation. The Ministry emphasized the importance of uninterrupted movement of sugar and urged market participants to prevent hoarding and speculation.
Sugar prices have decreased by 15% from their August peak and are expected to continue declining. The government will closely monitor the impact of erratic rainfall on sugarcane production and take necessary actions to balance domestic availability and consumer interests.
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