1 week ago
Centre Caps Bulk Sugar Stocks Ahead of Festival Season
The Indian government has introduced a rule limiting how much sugar large businesses can store.
Businesses that use at least 10 tonnes each month can keep only enough sugar for 15 days.
The rule applies to confectioners, soft-drink makers, food processors and sweet shops.
It will run from September 1 to November 30, 2026.
Officials say the measure is meant to help control prices and keep sugar available during the festival season.
Sugar demand often rises during Ganesh Chaturthi, Dussehra and Diwali.
Sugar prices are higher than they were a year ago.
The government has also allowed duty-free imports of 10 lakh metric tonnes of raw sugar until the end of October.
Officials and researchers are concerned that opening stocks for the next sugar season could be below domestic needs.
The Centre has limited bulk sugar consumers to a 15-day supply if their average monthly use is at least 10 tonnes.
The Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, applies from September 1 through November 30.
The rule covers confectioners, soft-drink manufacturers, food processors, sweetmeat sellers and other institutional buyers, excluding government institutions and local bodies.
The measure follows an earlier cap limiting sugar dealers to 4,000 quintals for 30 days.
Ex-mill prices reached Rs 5,400-5,500 per quintal and retail prices Rs 52.30 per kg, while the Centre also allowed duty-free imports of 10 lakh metric tonnes of raw sugar until October-end.
- Who
- The Indian government, with Food Minister Pralhad Joshi announcing the measure, and bulk sugar consumers.
- What
- The government imposed a 15-day stockholding limit on bulk consumers and allowed duty-free imports of 10 lakh metric tonnes of raw sugar.
- Where
- India.
- When
- The stock limit takes effect on September 1 and remains in force until November 30, 2026; the duty-free import permission lasts until the end of October.
- Why
- To address rising sugar prices and tight supplies and support availability during the festival season.
Key facts
- Monthly threshold
- The rule covers buyers with average monthly sugar consumption of at least 10 tonnes over the previous year, excluding the current month.
- Permitted stock
- Covered bulk consumers may hold no more sugar than they would consume in 15 days.
- Order period
- September 1 through November 30, 2026.
- Covered buyers
- Confectioners, soft-drink manufacturers, food-processing units, sweetmeat sellers and other institutional buyers.
- Excluded institutions
- Central and state government institutions, Union Territory administrations and local bodies are excluded.
- Sugar prices
- The all-India average ex-mill price rose to Rs 5,400-5,500 per quintal from Rs 3,900 a year earlier; retail prices reached Rs 52.30 per kg from Rs 46.34.
- Raw sugar imports
- The Centre allowed duty-free imports of 10 lakh metric tonnes of raw sugar until the end of October.
- Opening-stock estimates
- Estimates for the 2026-27 season range from 32-35 lakh tonnes to 40-42 lakh tonnes, compared with estimated domestic requirements of about 50 lakh tonnes.
Quotes
Food Minister Pralhad Joshi
Government minister responsible for food policy
“"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."”
rediff.com
thehansindia.com
Industry body representative
Source of sugar price data
“"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."”
rediff.com
Sources
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