Policy Shift Lowers Sugar Stock Cap to 2,000 Quintals, Prices Respond

New Delhi, September 1 — The central government has announced a reduction in the permissible sugar stock for traders to 2,000 quintals, down from the earlier limit of 4,000 quintals. The amendment, effective from 15 September to 30 November, is designed to curb hoarding and speculative trading ahead of the holiday season.

Previously, traders were allowed to stock up to 4,000 quintals across the country as of 1 August 2026. Under the new framework, no trader can retain sugar for more than 30 days, and the total stock held anywhere in India at any time cannot exceed 2,000 quintals.

An exemption remains for the Kolkata metropolitan area and its surroundings, where the 4,000‑quintal limit stays in place to meet local market requirements. The Ministry of Consumer Affairs noted that Kolkata supplies sugar to Uttar Pradesh, Maharashtra and the northeastern region, justifying the special provision.

Intensive physical verification of sugar inventories by authorities has uncovered excess holdings, prompting a roughly 20 % decline in ex‑mill sugar prices and an early indication of lower retail rates. Ongoing verification activities are slated to continue throughout the next few weeks to safeguard market stability.