The government has tightened sugar stock limits for dealers from September 15, halving the maximum quantity they can hold to 200 tonnes from 400 tonnes, in another administrative measure aimed at bringing down retail prices. However, traders in Kolkata and adjoining areas have been exempted and can continue to hold up to 400 tonnes at any point.
In a July 28 gazette notification, the Ministry of Consumer Affairs, Food and Public Distribution imposed the stock limit under the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025, which is valid until November 30. Traders were given four days to liquidate stocks above the 400-tonne limit. They were also directed to sell sugar within 30 days of receiving it.
“However, considering the specific market requirements of the region, the stock holding limit shall remain at 400 tonnes for Kolkata and its extended metropolitan areas,” the Ministry of Food said in a statement.
For orderly movement
Officials said Kolkata traders source sugar from Uttar Pradesh and Maharashtra and supply it to eastern and north-eastern States, prompting the government to retain the higher limit.
The latest move is aimed at curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks, the Ministry said. “It will facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices,” it said.
The government has also stepped up monitoring and physical verification of sugar stocks across the country, covering mills, dealers and traders. The exercise has identified instances of excess holdings, non-disclosure and irregularities in the movement and sale of sugar, it said.
Measures in place
The ministry said ex-mill sugar prices have declined around 20 per cent in recent days following government interventions and improved market availability. Retail prices have also begun to ease and are expected to follow the decline in ex-mill prices, it said.
The all-India average retail sugar price stood at ₹62.96 a kg on Tuesday, down from ₹63.28 the previous day and ₹63.97 a week ago according to Consumer Affairs Ministry data. The wholesale price was ₹5,803 a quintal, against ₹5,924 a week ago.
The government said it was closely monitoring the sugar market and had put in place a mechanism for regular declaration and updating of sugar stocks through the Department of Food and Public Distribution’s online portal. Physical verification of stocks across mills, dealers and traders will continue in the coming weeks.