The Centre has imposed stockholding limits on sugar traders to prevent hoarding during the festive season.

Under the order, traders cannot hold more than 1,000 quintals of sugar at a time. For Kolkata and Assam, the limit is 2,000 quintals. The limits apply from October 15 to November 30.

The move is aimed at keeping sugar prices stable when demand peaks during Diwali and the wedding season. Officials said the limits will ensure smooth supply and stop speculative stockpiling.

Sugar mills, wholesalers and retailers will have to declare their stocks regularly. Violations can attract action under the Essential Commodities Act.

India is the world’s largest consumer of sugar and the second-largest producer. Festive demand typically pushes consumption sharply higher in October and November.

The government has used stock limits as a tool in past years as well to cool prices. Traders’ bodies have been asked to cooperate and report their inventories on time.