Sugar Stocks Fall Up To 7% As Govt Tightens Stockholding Limits

Sugar stocks fell sharply on Tuesday after the government further tightened stockholding limits for dealers, stepping up efforts to curb hoarding and speculative trading and keep domestic sugar prices in check.

Dwarikesh Sugar Industries was the biggest loser among the pack, falling 7.02 percent to Rs 48.74. Triveni Engineering & Industries declined 5.76 percent to Rs 278.60, while Uttam Sugar Mills dropped 5.15 percent to Rs 296.

Dalmia Bharat Sugar fell 4.53 percent to Rs 462.20, Balrampur Chini Mills declined 4.40 percent to Rs 663 and Avadh Sugar & Energy was down 4.13 percent at Rs 820. Dhampur Sugar Mills lost 3.46 percent to Rs 172.99.

Shree Renuka Sugars declined 2.93 percent to Rs 24.17, Bajaj Hindusthan Sugar fell 2.85 percent to Rs 21.83 and Simbhaoli Sugars slipped 1.90 percent to Rs 8.27. EID Parry was down 0.91 percent at Rs 792.10.

Govt Halves Dealer Stock Limit

The Ministry of Consumer Affairs, Food and Public Distribution said on Tuesday that the maximum quantity of sugar dealers can hold will be reduced to 2,000 quintals from the existing 4,000 quintals.

The revised limit will take effect from September 15 and remain in force until November 30, 2026.

Under the new rules, dealers will not be allowed to hold sugar stocks for more than 30 days from the date of receipt. They will also be barred from holding more than 2,000 quintals at any time and at any location in the country.

The government had introduced the 4,000-quintal stockholding limit for sugar dealers across the country from August 1. The latest move effectively halves that ceiling as authorities seek to prevent excessive accumulation and ensure adequate supplies to consumers at reasonable prices.

An exception has been made for Kolkata and its extended metropolitan areas, where the existing 4,000-quintal ceiling will continue.

The government cited Kolkata's role as a distribution hub, with the region sourcing sugar from Uttar Pradesh and Maharashtra and supplying eastern and northeastern India.

Series of Measures To Control Sugar Prices

The latest intervention follows a series of measures announced by the government in recent weeks to improve sugar supplies and contain elevated prices.

In August, the government tightened inventory restrictions for large consumers and subsequently allowed duty-free imports of 1 million metric tonnes of raw sugar until October 31.

The measures came after tighter supplies pushed domestic sugar prices higher ahead of the festival season.

The latest restrictions are aimed at improving the availability and movement of sugar in the domestic market while discouraging hoarding and speculative activity.