New Delhi, Sept. 1 -- The Centre has cut the stock holding limit for sugar dealers by half to 2,000 quintals, seeking to curb hoarding and speculative trading amid a sharp rise in retail prices. The revised limit will apply from September 15 to November 30.
The earlier ceiling of 4,000 quintals, introduced on August 1, will continue in Kolkata and its extended metropolitan areas due to the region's specific market requirements, the food ministry said on Tuesday.
Under the amended rules, dealers cannot keep sugar for more than 30 days from the date of receipt. They will also
be barred from holding more than 2,000 quintals at any location across the country.
The ministry said Kolkata had been given an exception because the region sources sugar from Uttar Pradesh and Maharashtra and supplies it to eastern and north-eastern states.
The move comes as sugar prices remain high. The all-India average retail price reached Rs 63.28 per kg on August 31, up 37 per cent from Rs 46.02 per kg a year earlier, Consumer Affairs Ministry data showed. Wholesale prices increased 36.28 per cent year-on-year to Rs 58.40 per kg.
At the mill level, prices have eased. The ex-mill price in Maharashtra fell 30 per cent to Rs 45-46 per kg on September 1 from Rs 67 per kg on August 18.
The Centre has accused mills of "jacking up" prices while maintaining that sugar stocks are adequate. Production for the 2025-26 marketing year has, however, been revised down to 306 lakh tonnes from 343 lakh tonnes. Annual domestic demand is estimated at 280-285 lakh tonnes.
Published by HT Digital Content Services with permission from Millennium Post.