In order to control retail prices of Sugar in the peak festive season, the government notified a reduction in the stock-holding limit for sugar dealers to 1,000 quintals, effective from October 15 to November 30. The Department of Food and Public Distribution issued a gazette notification on Tuesday, October 6.
Earlier this month, the government reduced the stock holding period for sugar dealers to 15 days and fixed the stock holding limit at 1,000 quintals. The same will also come into effect from October 15 to November 30, 2026. However, the guidelines won't be applicable in Kolkata and its extended metropolitan areas and the State of Assam.
Why Govt Imposed Limit On Stock Holding
In August, the ministry imposed a storage limit of 4,000 quintals on sugar traders applicable from August 1 to November 30. Additionally, a maximum storage period of 30 days was introduced. Later, this limit was tightened to 2,000 quintals from September.
"The revised norms are aimed at ensuring that sugar is not unnecessarily accumulated in the distribution chain and that supplies move smoothly from sugar mills through dealers and ultimately reach the end consumer," the ministry had said.
The main purpose of reducing storage limits is to avoid stockpiling, discourage speculative trading, and prevent traders from hoarding sugar.
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"By limiting the quantity and duration for which sugar can be held, the Government seeks to facilitate an orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices," the ministry had said.
Earlier this month, the ministry said the average retail sugar price had fallen 15 per cent from its August peak and was likely to fall further. It also said sugar prices at mills had fallen by about 28 per cent and had remained stable for the past three weeks.
(With Input From Agency)