Sugar Stock Limit Cut To 1,000 Quintals, New Rule To Take Effect From October 15

The Indian government has imposed stricter limits on sugar stock for dealers to curb hoarding and ensure a steady supply during the upcoming festive season. Under the amended rules, dealers will now be allowed to store a maximum of 1,000 quintals of sugar, effective from October 15 to November 30, 2026. The reduction in both quantity and holding period aims to expedite the movement of sugar from mills to consumers and prevent speculative trading.

The new regulation applies nationwide, with the exception of Kolkata, its metropolitan areas, and Assam, where dealers can retain up to 2,000 quintals. This relaxation is attributed to the unique regional supply requirements, transportation obstacles, and consumer preferences in the North-East.

Dealers in these areas are permitted to stock up to 2,000 quintals, a relaxation designed to address the specific needs of the North-East region. This is the most recent tightening of sugar stock rules, following a previous 4,000-quintal limit introduced on August 1, which was subsequently lowered to 2,000 quintals on September 15.

The decision includes extending the holding period from 15 days to 30 days for dealers in the North-East. The government's move comes after retail sugar prices declined by around 15 percent, while ex-mill prices dropped by approximately 28 percent. The authorities anticipate that the tighter limits will facilitate smooth sugar supplies and maintain reasonable prices during the festive period.