New Delhi [India], September 1 (ANI): The government has reduced the maximum quantity of sugar that dealers can hold to 2,000 quintals from 4,000 quintals from September 15, as it steps up measures to curb hoarding and keep sugar prices under control.

The revised stock limit will remain in force until November 30, according to a release by the Ministry of Consumer Affairs, Food and Public Distribution on Tuesday.

'Government of India has reduced the stock holding limit for sugar dealers from 4,000 quintals to 2,000 quintals, effective from 15th September, 2026 till 30th November, 2026, to ensure adequate availability of sugar in the domestic market and to prevent hoarding and speculative trading of sugar,' the ministry said.

Under the revised rules, dealers will not be allowed to hold sugar stocks for more than 30 days from the date of receipt and cannot keep more than 2,000 quintals of sugar at any time or place across the country.

However, the stock limit will remain at 4,000 quintals for Kolkata and its extended metropolitan areas because the region acts as a distribution hub for sugar sourced from Uttar Pradesh and Maharashtra and supplied to eastern and northeastern India.

The government said physical verification of sugar stocks at mills, dealers and traders has found instances of excess holding, non-disclosure and irregularities in the movement and sale of sugar.

'The measure is aimed at further curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks,' the ministry said, adding that it would help maintain the movement of sugar through the supply chain and its availability to consumers at reasonable prices.

The latest move comes after sugar prices rose sharply in recent weeks. Retail sugar prices increased from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20, a rise of around 15.6 per cent in one month, according to an earlier PIB release. The government attributed the rise to lower-than-expected production, higher festive demand, weather-related crop damage, tightening global supplies and speculation and hoarding.

Sugar production during the current season is estimated at around 306 lakh metric tonnes (LMT), lower than the initial estimate of around 343 LMT. The government has said production was affected by Red Rot and Top Borer disease in sugarcane and waterlogging caused by excess rainfall.

The Centre has taken several measures to increase domestic supplies. It had imposed a stock limit of 4,000 quintals on dealers from August 1, restricted bulk consumers from holding more than 15 days of consumption from September 1 and permitted duty-free imports of 10 LMT of raw sugar. Mills have also been advised to begin crushing from October 15 to improve supplies during the festive season.

The ministry said these measures have begun to show results, with ex-mill sugar prices declining by around 20 per cent in recent days and retail prices also beginning to move lower. (ANI)