Govt imposes stock limit for bulk sugar consumers
Sugar prices have turned bitter as they are rising rapidly across the country, driven by speculation over record-low stocks and the approaching festive season. This prompted the Government to impose a stock limit on sugar for bulk consumers, including confectionery makers, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers.
Retail prices have risen by approximately 20 per cent since August 7 across major cities. The retail price of sugar has increased from `52 to around `62 over the past 12 days, representing a rise of 19-21 per cent. The all-India average ex-mill price rose to `5,400-5,500 a quintal on Tuesday, up from `3,900 a year earlier.
Union Food Minister Pralhad Joshi, in social media, announced that bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond what they would consume in 15 days. The food ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, which covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers and other institutional buyers.
The order will come into force from September 1 and remain in effect till November 30. This follows an earlier order, effective August 1 to November 30, capping stock with sugar dealers at 4,000 quintals for 30 days.
Market analysts predict that the prices will continue to rise in the coming days, raising concerns for the government regarding domestic sugar supplies and pricing.
Under the new order, the monthly quantity of sugar sold by each mill to a bulk consumer — whether directly or through dealers — will be verified, and consumption will be determined with reference to GST returns filed by sellers and/or buyers, using the relevant HSN code applicable to sugar.
A bulk consumer has been defined as a confectioner, soft drink manufacturer, food processing unit, sweetmeat seller or any other institutional buyer with an average monthly consumption of not less than 10 tonnes over the last one year, excluding the current month.
