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Informist, Tuesday, Sept. 1, 2026

 

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--Govt cuts stockholding limit for sugar dealers to 200 tn from Sept 15 
--Govt: Cut sugar stock limit to curb hoarding, speculative trading 
--Govt: Cut sugar stock limit to ensure adequate supply, price stability 
--Govt cuts stock limit for sugar dealers to 200 tn from Sept 15 to Nov 30

 

NEW DELHI – The central government has reduced the stockholding limit for sugar dealers to 200 tonnes from 400 tonnes. The revised limit comes into effect Sept. 15 and will be in force till Nov. 30, the Ministry of Consumer Affairs, Food, and Public Distribution said Tuesday.

 

According to the ministry, the reduction aims to curb hoarding, speculative trading, and excessive accumulation of stocks. "It will facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices," the ministry said in a press statement. 

 

According to the amended provisions, dealers cannot hold any stock for more than 30 days from the date of receipt. However, in Kolkata and its extended metropolitan areas, sugar dealers can continue to hold up to 400 tonnes. "The Kolkata area is sourcing sugar from Uttar Pradesh and Maharashtra and supplying to the eastern part of the country, including the North-Eastern region. Therefore, the existing limit of 4,000 quintals has been retained for Kolkata and its extended metropolitan areas," the ministry said.

 

Monday, ex-mill sugar prices in Mumbai fell by INR 200 to INR 5,000-INR 5,200 per 100 kilograms. In Kolhapur as well, sugar prices fell by INR 200 to INR 4,850-INR 4,980 per 100 kg. In Uttar Pradesh, sugar prices were down by INR 250-INR 270 at INR 5,400–INR 5,500 per 100 kg. In Karnataka, prices were down by INR 350-INR 450 at INR 4,850–INR 5,050 per 100 kg. In Gujarat, sugar prices fell INR 900-INR 910 to INR 5,030–INR 5,100 per 100 kg. In Tamil Nadu, they fell INR 200-INR 400 to INR 5,500-INR 5,600 per 100 kg.

 

Sugar prices had been rallying since July amid speculation of stocks tightening by October, prompting panic buying ahead of the festival season. Deficient rainfall and forecasts of El Nino strengthening in August and September added a weather premium to prices. However, prices have been declining since last week and are not expected to rise. The ministry, in its statement, said the interventions have resulted in ex-mill sugar prices declining by 20% in recent days, which has begun reflecting in retail prices as well.

 

The government had on Aug. 20 scrapped the 100% import duty on raw sugar and permitted import of unrefined variety duty-free till the end of October, to increase supply of the seetener. Besides, Friday, it changed the monthly sales quota for sugar mills to a fortnightly quota.  End

 

Reported by Upasika Singhal

Edited by Rajeev Pai

 

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