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Government imposes stock holding limits on sugar dealers to prevent hoarding, protect consumer interests, maintain price stability and ensure a transparent and efficient sugar supply chain

Date:

Vinod Bhat

New Delhi: The Government of India has decided to impose stock holding limits on sugar dealers across the country with effect from 1st August, 2026. The order will remain in force up to 30th November, 2026.

In order to curb hoarding, discourage speculative trading and ensure the continuous availability of sugar at reasonable prices, the Government has decided to impose stock holding limits on sugar dealers. The measure is aimed at maintaining orderly supplies in the domestic market, safeguarding consumer interests, and ensuring that genuine trade and distribution activities continue without disruption.

The Government has observed that the recent increase in ex-mill prices of sugar is not supported by the prevailing demand-supply fundamentals. It has also come to notice that hoarding by certain traders, dealers and market intermediaries, along with speculative transactions and paper trade without the actual physical movement of sugar from mills, has contributed to creating an artificial perception of scarcity in the market. Such practices have resulted in avoidable price volatility and an increase in both ex-mill and retail sugar prices. The Government assures consumers that adequate quantities of sugar are available in the country to meet domestic consumption requirements.

All sugar dealers will be required to declare their sugar stocks and update their stock position on a weekly basis through the Department of Food and Public Distribution’s online portal: https://foodstock.dfpd.gov.in/. The Department will continue to closely monitor the sugar market and take all necessary measures to ensure the adequate availability of sugar at reasonable prices.

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