NFCSF urges centre to reconsider sugar stock holding limits; Says the measure will lead to regional supply imbalances
NFCSF urged the government to review the new 4,000-quintal sugar stock limit, warning it could disrupt supplies to the Northeastern States and affect sugar-based industries. The federation sought higher limits for Kolkata distribution hubs and exemptions or separate limits for captive industrial sugar users.
The National Federation of Cooperative Sugar Factories Ltd. (NFCSF) has urged the Government to review the recently notified stock holding limits for sugar dealers, as the new restrictions could disrupt supplies to the Northeastern States and adversely impact sugar-based manufacturing industries.
In a letter addressed to Ashwani Srivastava, Joint Secretary (Sugar), Ministry of Consumer Affairs, Food & Public Distribution, NFCSF expressed concerns over the notification issued on July 28, 2026, under the Essential Commodities Act, 1955 and the Sugar (Control) Order, 2025. The notification prescribes a maximum stock holding limit of 4,000 quintals for dealers and restricts stock retention to 30 days.
NFCSF emphasised that the earlier provisions under the Sugar (Control) Order, 1966 had allowed recognised dealers importing sugar into Kolkata and its extended area to maintain stocks of up to 10,000 quintals. The higher limit was granted in recognition of Kolkata’s critical role as the principal transit and distribution hub for sugar supplies to the Northeastern States.
According to the Federation, sugar from major producing states reaches Kolkata primarily through railway rakes and is unloaded at Kolkata and Dankuni terminals before being redistributed across the Northeast via rail and road. The Association said that the newly prescribed uniform stock limit of 4,000 quintals does not adequately account for these logistical realities.
NFCSF cautioned that reducing permissible stock levels could interrupt the smooth movement of sugar to the Northeastern region, increase transportation costs, and create regional supply imbalances.
The Federation has also raised concerns regarding the expanded definition of “dealer” under the Sugar (Control) Order, 2025, which now includes processors using sugar as a raw material.
NFCSF noted that manufacturers producing confectionery, biscuits, beverages, pharmaceuticals, and other food products procure sugar solely for captive consumption rather than for trading or resale. Applying the same stock holding limits to these industrial units, it said, could disrupt manufacturing operations, affect production schedules, and strain industrial supply chains.
The Federation has therefore requested the government to exempt bona fide processors using sugar exclusively for captive consumption from the stock holding limits or prescribe a separate and appropriate limit for such units.
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Source : ChiniMandi
