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The Centre imposed stockholding limits on sugar dealers to curb hoarding and stabilise rising prices, in an order issued on 28 July 2026.
A dealer cannot hold more than 4,000 quintals of sugar at a time and cannot store it for more than 30 days from receipt.
The limits apply from 1 August to 30 November 2026.
The order was issued under the Essential Commodities Act, 1955 read with the Sugar (Control) Order, 2025.
The step follows a rise in ex-mill sugar prices to around ₹45 per kg from ₹39 over three months.
Under the Essential Commodities Act, 1955, the government can cap how much of a listed essential commodity a trader may hold. This discourages hoarding and speculative stockpiling that push up prices, releasing supply into the market.
Simple Analogy: It is like telling shopkeepers they can keep only so much stock at a time, so no one can lock away supply and drive up the price.
GS Paper III > Economy > Inflation & Commodity Management
General Awareness > Economy
The price of sugar as sold by the mill, before wholesale and retail margins are added