The Ministry of Consumer Affairs, Food and Public Distribution said on Thursday that it would tighten sugar dealer limits ahead of the festive season, a move aimed at curbing hoarding. The new season began on 1 October.
Earlier this year, the government had imposed a 4,000‑quintal ceiling with a 30‑day holding period; it was lowered to 2,000 quintals in September.
The rule does not apply to Kolkata and its metropolitan area or Assam, where the ceiling is set at 2,000 quintals, reflecting the cities' roles as distribution hubs and transportation constraints.
By limiting quantity and storage time, the government hopes to keep the flow of sugar smooth and prevent speculative accumulation that could drive prices up during peak demand.
The ministry also warned that erratic rainfall linked to El Niño could affect sugarcane output, and it has urged mills to start crushing in line with agro‑climatic conditions, while state governments are to take local measures.
State authorities will enforce the rules from 15 October to 30 November, and the ministry said it will review the impact on prices and supply before the end of the festive period.