Govt Tightens Sugar Stock Limits To 15 Days From Sep 1 As Prices Hit Record High

The Union government has tightened sugar stockholding limits once again as it seeks to contain record-high prices and ensure adequate supplies ahead of the festive season.

According to a notification issued by the Department of Food and Public Distribution on August 19, dealers and bulk consumers using more than 10 metric tonnes of sugar a month will not be permitted to hold inventories for more than 15 days.

The new restriction will take effect from September 1 and remain in force until November 30, 2026. It replaces the 30-day stockholding limit introduced by the government last month.

Who Will Be Covered Under New Sugar Stock Limits?

The latest order covers bulk consumers and dealers that have consumed an average of at least 10 metric tonnes of sugar a month over the past year, excluding the current month.

The category includes confectionery manufacturers, soft drink companies, food processing businesses, sweet manufacturers and other institutional buyers.

Government institutions at the central and state levels, Union Territory administrations and local bodies have been exempted from the order.

The government will monitor sugar purchases and stocks by verifying the quantities supplied by mills to bulk consumers, either directly or through dealers. Consumption will be assessed using GST returns and the applicable Harmonised System of Nomenclature (HSN) code for sugar.

Festive Demand Pushes Sugar Prices Higher

The move comes as sugar consumption traditionally rises between August and November, when festivals such as Ganesh Chaturthi, Dussehra and Diwali boost demand for sweets, beverages, biscuits and other processed foods.

Despite the earlier 30-day inventory restriction, sugar prices have continued to climb. Prices have increased around 10% over the past month, reaching a record level, with tight supplies and stronger festive demand expected to keep prices elevated in the coming months.

The government is also considering additional measures to improve domestic availability, including limited duty-free sugar imports. Such a move could potentially allow India to import significant quantities of sugar for the first time in nearly a decade.