The Centre has further tightened sugar stock limits for dealers ahead of the festive season, reducing the permissible inventory to 1,000 quintals and limiting the holding period to 15 days. The revised restrictions will come into effect from October 15 and remain in force until November 30, according to the Ministry of Consumer Affairs, Food and Public Distribution. The move is aimed at preventing hoarding, discouraging speculative stock accumulation and ensuring that lower ex-mill sugar prices are passed on to consumers.
The government said ex-mill sugar prices have declined by around 28% and have remained stable over the past three weeks, while average retail sugar prices have fallen by about 15% from their August peak. Wholesalers and retailers have been asked to pass on the benefit of lower mill-level prices to consumers. Under the amended rules, dealers will not be allowed to hold more than 1,000 quintals of sugar at any given time or retain stocks for more than 15 days from the date of receipt. 
However, the revised limit will be different for Kolkata and its extended metropolitan areas and Assam, where dealers can hold up to 2,000 quintals. The government said the higher limit for Kolkata reflects its importance as a major sugar distribution hub for eastern and northeastern India, while Assam has been given a higher ceiling due to geographical and transportation challenges.
The Centre had initially introduced a nationwide sugar stock limit of 4,000 quintals in August, along with a maximum holding period of 30 days. The limit was reduced to 2,000 quintals from September 15 and has now been further halved to 1,000 quintals, with the holding period also reduced to 15 days.
The government said the tighter stock controls are intended to ensure a smooth movement of sugar from mills to dealers and consumers during the festive season. It is also monitoring sugarcane availability amid concerns over erratic and deficient rainfall in some major producing regions. Sugar mills have been advised to start crushing operations according to local agro-climatic conditions, while state governments have been asked to take necessary steps based on regional conditions. The Centre said it will continue monitoring sugar availability and prices and take measures to balance consumer interests with remunerative returns for sugarcane farmers.
