The government has capped the stock limit of sugar to 4,000 quintals for dealers across the country from August 1 to curb hoarding and speculative trading amid a sharp rise in domestic sugar prices.The latest directive, by the Ministry of Food and Consumer Affairs, also bars the dealers from holding the stock beyond 30 days from the date of receipt. “Under the order, no sugar dealer will be allowed to hold stocks for over 30 days from the date of receipt or keep more than 4,000 quintals of sugar in stock at any point. The restrictions have been imposed under the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025. The order will remain in force from August 1 to November 30,” it said.Earlier, there was no quantitative restriction on dealers of sugar, although the ministry fixes a monthly sale quota for sugar mills. The government has observed that the recent increase in mill prices of sugar is not supported by the prevailing demand-supply fundamentals. It has also come to notice that hoarding by certain traders, dealers and intermediaries, along with speculative transactions and paper trade without actual physical movement of sugar, has contributed to creating an artificial perception of scarcity.”In order to curb hoarding, discourage speculative trading and ensure the continuous availability of sugar at reasonable prices, the decision was made. The measure is aimed at maintaining orderly supplies in the domestic market, safeguarding consumer interests, and ensuring that genuine trade and distribution activities continue without disruption,” the order said.According to the ministry, all sugar dealers will have to declare their sugar stocks and update inventory every week through the Department of Food and Public Distribution’s online portal.It said it will closely monitor the market and take further measures, if required, to ensure sugar remains available at reasonable prices.Meanwhile, the government reiterated that the country has adequate sugar stocks to meet domestic consumption, and said genuine trade and distribution activities would continue without disruption despite the stock limits.Earlier this year, the Centre had also banned sugar exports until September 30 after concerns that lower-than-expected sugar production and weaker cane yields could tighten domestic supplies for a second consecutive season.However, it had already permitted the export of nearly 16 lakh tonnes of sugar for the 2025-26 marketing year ending September.