Govt orders sugar dealers to limit stocks to 30 days
The government on Tuesday directed that no dealer of sugar should hold stock for more than 30 days and also imposed a stock limit of 4,000 quintals as part of its efforts to keep prices of sweetener under control.
The order would come into force with effect from August 1, 2026, and would remain in force up to November 30, 2026.
In a gazette notification, the Ministry of Food and Consumer Affairs imposed this restriction using powers under section 3 of the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025.
“...Central Government hereby directs that no dealer of sugar shall hold any stock for a period exceeding thirty days from the date of receipt of such stock and shall not keep sugar in stock at any time and in any place throughout the country in excess of 4,000 quintals,” the notification said.
To keep prices under check amid a forecast of a deficit monsoon, the Centre has already banned sugar exports.
The order would not apply to sugar stocks held on the government account, or by dealers nominated by the State Government or an officer authorised by it to hold stock for distribution through fair price shops under the Public Distribution System.
The ministry said that the state governments or Union territory administrations should fix the stock holding and turnover limits, subject to the condition that the stock holding limit and the turnover period shall not be higher than the limit or period as specified herein.
For counting the period of holding of the stock, the date on which any stock is received by the dealer should be included.
The ministry asked all dealers to declare and regularly update the stock position of sugar on the portal.
In May, India banned the export of sugar till September 30 this year with immediate effect, a move aimed to enhance domestic availability and contain prices.
The government has allowed exports of nearly 16 lakh tonnes of sugar for the 2025-26 marketing year ending September.
ISMA has projected total production for the 2025-26 marketing season at 29.3 million tonnes after ethanol diversion, up from 26.12 million tonnes recorded in 2024-25.
On July 17, sugar industry bodies ISMA and NFCSF asserted that there is adequate stock of sweetener in the country and asked institutional buyers as well as wholesale and retail traders to refrain from “speculative buying” amid the recent price rise.
