With sugar prices touching new highs on Thursday, the Central government continued its crackdown on perceived hoarding and black marketing by imposing a stockholding limit on bulk consumers of sugar.
The crackdown also included a strict diktat from the government to all mills to furnish mill-wise and buyer-wise details of sugar sold between August 17-19, 2026.
Food Minister Pralhad Joshi announced on social media 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.
Shares of sugar companies rallied on the news of the Centre tightening the stockholding limit and due to a record jump in prices in both the domestic and global markets.
Thursday’s order follows an earlier order, effective August 1 to November 30, capping stocks with sugar dealers at 4,000 quintals for 30 days.
The curbs come against the backdrop of a sharp rise in sugar prices, with ex-mill rates hitting record levels due to a lower opening stock ahead of the 2026-27 season.
The all-India average ex-mill price rose to Rs 5,400-5,500 a quintal on Tuesday, up from Rs 3,900 a year earlier, according to an industry body.
Data furnished by NCDEX showed that spot sugar prices in major markets across India touched a 16-year high of Rs 5,530 per quintal on August 19, 2026.
Retail sugar prices climbed about 13 per cent year-on-year to Rs 52.30 a kg as on August 18, up from Rs 46.34 a year ago, according to consumer affairs ministry data.
Demand for sugar typically rises between August and November, as the country celebrates major festivals, such as Ganesh Chaturthi, Dussehra and Diwali.
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 is 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.
The order does not apply to institutions belonging to the central or state governments, Union Territory administrations, or local bodies.
The tighter stockholding norm comes amid concerns over sugar availability for the 2026-27 season, which begins on October 1.
Industry estimates put opening stocks for the new season at 4-4.2 million tonnes, while some researchers peg the figure lower, at 3.2-3.5 million tonnes — both below the estimated domestic requirement of around 5-6 million tonnes.
