The restriction will be in force from August 1 to November 30, the Ministry of Consumer Affairs, Food and Public Distribution said Tuesday.
ET reported first about the government considering imposing a stock limit on sugar as prices touched an all-time high.
As per the direction under the Sugar (Control) Order, 2025, no dealer is allowed to hold more than 4,000 quintals of sugar at any single location. Dealers are also required to sell or turn over their stock within 30 days of receiving it.
The order allows state governments to enforce even stricter limits if needed, but they cannot relax the central guidelines.
It is mandatory for dealers to declare and regularly update their stock positions on the portal of the Department of Food and Public Distribution.
The government has announced a quota of 2.25 million tonnes of sugar for August. According to experts, despite the record-high prices, the government has kept the quota the same as last year. The government also last week announced physical verification of stocks with sugar mills, to be carried out during August 1-14.