To curb sugar hoarding in the country and control prices ahead of the festivals, the central government has announced a reduction in the stock limit for sugar dealers.
According to the Food Ministry’s new order, sugar traders and dealers will be allowed to hold a maximum stock of 2,000 quintals from September 15. This new rule will remain in force across the country until November 30, 2026.
Traders will not be allowed to hold stock for more than 30 days
Under the new rules, dealers will no longer be permitted to hold sugar for more than 30 days from the date they receive the stock.
In addition, they will not be allowed to hold more than 2,000 quintals of sugar at any one location in the country at a time.
The government’s main objective is to curb hoarding and speculation, ensuring a smooth supply in the market and making sugar available to ordinary consumers at fair prices.
Kolkata and northeastern states granted an exemption
The previous stock limit of 4,000 quintals will continue for Kolkata. In fact, sugar arrives in Kolkata from Uttar Pradesh and Maharashtra, and is supplied from there to West Bengal as well as the entire northeastern region of India. The limit has been relaxed for these areas to ensure that there is no disruption in the supply chain.
The 4,000-quintal limit came into effect on August 1
Earlier, the government had imposed a stock limit of 4,000 quintals on sugar dealers across the country from August 1. However, following complaints that stocks were being hoarded improperly in the market, the government has reduced the limit by half.
The government is conducting strict monitoring and physical verification of the warehouses of sugar mills, dealers, and traders, where several irregularities and undeclared stocks have been detected.
Sugar becomes up to 20% cheaper; retail prices will also decline
Due to the government’s strict action and improved market supply, wholesale (ex-mill) sugar prices have fallen by around 20%. As a result, sugar prices in the retail market have also started to decline. In the coming days, the general public will get sugar at lower prices.
