The government has cut the sugar stock holding limit for dealers to 1,000 quintals. The rule applies from October 15 to November 30. It aims to ensure supplies during the festive season.

Dealers can hold stock for only 15 days from the date of receipt. The food ministry announced the revised norms on October 1. The new sugar season began the same day.

Kolkata, its extended metropolitan areas and Assam get a higher limit of 2,000 quintals. Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka. It supplies eastern India and the northeast. Assam’s limit reflects transport constraints.

The ministry wants orderly movement of sugar through the supply chain. Retail prices have fallen about 15 per cent from their August peak. Ex-mill prices are down nearly 28 per cent. Mills must sell and lift 45 per cent of their early-October quota within seven days, by October 8. The government will keep watching rainfall effects on sugarcane in some producing areas.