The central government has halved the stockholding limit for sugar dealers to 2,000 quintals from 4,000 quintals, tightening restrictions on the trade as it seeks to prevent hoarding and speculative buying ahead of the festive season.
It first capped dealer stocks at 4,000 quintals from August 1, then extended stock restrictions to large industrial consumers from September 1, limiting those using more than 10 tonnes of sugar a month to 15 days of their requirement. The latest move is part of Centre’s major interventions in the sugar market in little over a month.
The price surge followed concerns over tighter domestic supplies and lower closing stocks for the 2025-26 sugar season, which ends in September. When the government first imposed the 4,000-quintal limit in July, ex-mill prices in Maharashtra had risen to about ₹ 42,000 a tonne from ₹ 38,000 a tonne the previous month. A rainfall deficit early in the monsoon also added to concerns over the currently sown crop outlook.
The new limit is aimed at further curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks , the government said. The measure will “facilitate the orderly movement of sugar through the supply chain” and ensure its “continuous availability to consumers at reasonable prices”, it said.
