6 days ago
Retailers Cap Sugar Purchases as Demand Rises, Stocks Fall
Stores and delivery apps are limiting how much sugar each person can buy.
They are doing this because many people want sugar and supplies may be lower than usual.
The limits are different for small packets and large packets.
Sugar stocks for the current season are expected to be much lower than in earlier years.
People are buying more sugar before the festive season.
Sugar prices have risen by about 25% in two months.
The government has also told large users to keep no more than 15 days of sugar supplies.
These steps are meant to bring more sugar into the market and help control prices.
Reliance and D-Mart are limiting sugar purchases to about 2-3 kilograms per customer.
Zepto, Instamart and Blinkit allow two or three 1-kilogram packets, but only one 5-kilogram packet.
Sugar stocks for the October 2025-September 2026 season are estimated at 3.9 million tonnes.
The projected closing inventory is 25% below the 2025 season and 40% below the five-year average.
The government has imposed stock limits on bulk buyers as sugar prices rose about 25% in two months.
- Who
- Retailers, quick-commerce platforms, the government and bulk sugar consumers are involved.
- What
- Retailers and delivery platforms have capped sugar purchases, while the government has imposed stock-holding limits on large sugar users.
- Where
- The limits apply at retail stores and quick-commerce platforms, while ex-mill prices cited are from key markets in Maharashtra and Uttar Pradesh.
- When
- The purchase limits and government measures were reported in August, ahead of the festive season; the relevant sugar season runs from October 2025 to September 2026.
- Why
- Demand has increased ahead of the festive season, while lower output and falling inventories have raised concerns about availability and prices.
Key facts
- Retail-store limit
- Reliance and D-Mart are limiting purchases to around 2-3 kilograms per consumer.
- Quick-commerce limit
- Zepto, Instamart and Blinkit allow two or three 1-kilogram packets, but only one 5-kilogram packet.
- Projected closing stocks
- 3.9 million tonnes for the October 2025-September 2026 sugar season.
- Inventory comparison
- The projection is 25% below the 2025 season and 40% below the five-year average of 6.5 million tonnes.
- Price increase
- Sugar prices rose about 25% in two months during August.
- Current ex-mill prices
- Prices in key Maharashtra and Uttar Pradesh markets were around Rs 5,700-Rs 6,000 per 100 kilograms.
- Bulk-stock rule
- Consumers using more than 10 metric tonnes monthly cannot hold sugar for more than 15 days for that use.
Quotes
Department of Food and Public Distribution
Indian government department that issued the stock-holding-limit notification
“No bulk consumer using or consuming more than 10 metric tonnes of sugar per month as raw material for production, consumption or use, in any manner, shall keep in stock sugar for any period exceeding fifteen days for such consumption or use.”
republicworld.com
Sources
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