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If you are on a standard 2,000-calorie diet, this means that you should be eating no more than 500 calories from sugar, or 125 grams. Like all carbohydrates, sugar contains 4 calories per gram. The USDA recommendations are lower than the IOM's.
40 grams is the MAXIMUM amount recommended for non-diabetic people and no added sugar, such as granulated sugar, is necessary, since it adds no nutrition to the body. If you're diabetic or borderline diabetic, please see the note at the bottom.