India reduces sugar stock limit for dealers to curb hoarding and rising prices

NEW DELHI: Centre on Tuesday tightened the stock limit for sugar dealers, reducing it from 4,000 quintals to 2,000 quintals from September 15 to November 30, as it sought to curb hoarding and contain rising retail prices. The food ministry said the existing 4,000-quintal limit would continue in Kolkata and its extended metropolitan areas “considering the specific market requirements of the region”. The move is aimed at ensuring adequate availability of sugar in the domestic market and preventing hoarding and speculative trading, the ministry said. Under the revised rules, dealers cannot hold sugar stocks for more than 30 days from the date of receipt. They will also not be allowed to hold more than 2,000 quintals at any time at any location across the country. The ministry said the 4,000-quintal limit would remain in place in Kolkata because the region sources sugar mainly from Uttar Pradesh and Maharashtra and supplies it to eastern and northeastern states. The decision comes as sugar prices remain elevated. The all-India average retail price stood at Rs 63.28 per kg on August 31, up 37% from Rs 46.02 per kg a year earlier, according to Consumer Affairs Ministry data. Wholesale prices also rose 36.28% year-on-year to Rs 58.40 per kg. However, industry data showed some easing in mill-level prices. The ex-mill price of sugar in Maharashtra fell to Rs 45-46 per kg on September 1 from a peak of Rs 67 per kg on August 18. The Centre has accused sugar mills of “jacking up” prices, while maintaining that the country has adequate stocks, PTI reported. The government’s position comes despite sugar production estimates for the 2025-26 marketing year, which runs from October to September, being revised down to 306 lakh tonnes from the earlier estimate of 343 lakh tonnes.