New Delhi, Sep 1: The government has tightened sugar stock limits for dealers ahead of the festive season, reducing the permissible stockholding limit from 4,000 quintals to 2,000 quintals from September 15 to November 30, 2026.

The move is aimed at preventing hoarding and speculative trading and ensuring that sugar remains readily available in the domestic market as festive demand increases.

Under the revised rules, dealers will not be allowed to hold sugar for more than 30 days from the date of receipt. They will also have to ensure that their total stock does not exceed 2,000 quintals at any time or place.

The government has made an exception for Kolkata and its extended metropolitan areas, where the existing 4,000-quintal limit will continue. Kolkata is an important distribution centre for sugar sourced from Uttar Pradesh and Maharashtra and supplied to eastern and northeastern India.

The government has also stepped up monitoring of sugar stocks through physical verification of mills, dealers and traders. Officials have identified instances of excess stockholding, non-disclosure and irregularities in the movement and sale of sugar.

The measures are already helping improve market availability, with ex-mill sugar prices declining by around 20 per cent in recent days. Retail prices have also started showing signs of easing.

The government will continue monitoring sugar stocks and receiving regular stock declarations through its online system. The objective is to ensure smooth supplies and stable prices during the festive period while allowing genuine trade and distribution activities to continue without disruption.

The latest step is expected to provide greater stability in the sugar market at a time when demand from households, sweet makers, food processors and other businesses typically rises during the festive season.