- The government announced stock holding limits for sugar dealers nationwide to curb hoarding
- The order will be effective from August 1, 2026, to November 30, 2026
- The move aims to ensure reasonable sugar prices and maintain orderly domestic supplies
The government on Tuesday announced stock holding limits for sugar dealers across the country to curb hoarding, discourage speculative trading, and ensure the availability of sugar at reasonable prices. The order will come into effect on Aug. 1, 2026, and remain in force until Nov. 30.
According to a PIB report, the move is also intended to maintain orderly supplies in the domestic market, safeguarding consumer interests, and ensuring that genuine trade and distribution activities continue without disruption.
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The report said the government has observed that the recent rise in ex-mill sugar prices is not supported by prevailing demand and supply fundamentals.
It noted that hoarding by some traders, dealers, and market intermediaries, along with speculative trading and paper transactions without the actual movement of sugar from mills, has created an artificial perception of scarcity.
These practices have led to unnecessary price volatility and pushed up both ex-mill and retail sugar prices. The government assured consumers that the country has adequate sugar stocks to meet domestic demand.
Under the new directive, all sugar dealers must declare their sugar stocks and update their inventory every week through the Department of Food and Public Distribution's online portal.
The department said it will continue to closely monitor the market and take necessary steps to ensure adequate sugar availability at reasonable prices.
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