The government on Tuesday reduced the maximum amount of sugar bulk consumers can hold from 4,000 to 2,000 quintals. The revised stock limit will take effect from September 15 and will remain in force till November 30. The measure was taken to curb hoarding and keep sugar prices under control.
However, the stock limit will remain at 4,000 quintals for Kolkata as it acts as a distribution hub for sugar sourced from Uttar Pradesh and Maharashtra and supplies to eastern and northeastern India.
Sugar prices have been on the rise in India, with retail prices reaching a peak of ₹67 per kg on August 18. The price hike had prompted the government to initiate measures to increase the supply of sugar in the market, which would directly decrease the price.
The Centre first tightened the sugar stockholding limits for bulk consumers to 4,000 quintals for 15 days. Following this decision, the Centre announced a temporary duty-free quota that allows the import of 10 lakh tonnes of raw sugar.
After these measures were initiated, ex-mill sugar prices fell by nearly 30 per cent to ₹47 per kg on Monday. Combined with the increased tightening on stock limits, this is expected to reduce prices in the coming days.
However, while a decline in ex-mill rates will be reflected immediately in wholesale markets, retail prices will lag behind. Retailers who bought the sugar at higher prices are unwilling to sell it at a loss and will continue to sell it at a profitable price.
Demand for sugar will also increase as the country gears up for the festive season, which will directly increase prices. International sugar prices have climbed more than 16 per cent in less than two months because of tighter global supplies.
The Centre blamed mills for “jacking up” rates and insisted that the country has ample sugar stocks. But India’s projected sugar opening stock for October 2026 is low, dropping to 32-42 lakh tonnes from 47 lakh tonnes in October 2025. This decline stems from low production of 296 lakh tonnes, the lowest level since the 2019 to 2020 season.
Hence, the newest measure to curb prices is not expected to bring relief, as it will only slightly cushion the price increase due to low supply and high demand.
