Centre Tightens Sugar Stocks as Prices Rise Ahead of Festive Season

New Delhi, Aug 20: The Centre has tightened sugar stockholding rules for bulk consumers following a sharp rise in prices ahead of the festive season. Under the new measure, large consumers will be allowed to maintain sugar inventories for a maximum of 15 days of their normal consumption.

 Pic Credit: Pexel

The restriction will come into effect from September 1 and remain in force until November 30, according to a notification issued by the Ministry of Consumer Affairs, Food and Public Distribution.

The order applies to businesses and institutions consuming more than 10 metric tonnes of sugar a month for production, processing or other uses. The category includes confectionery manufacturers, soft drink companies, food processing units, sweet shops and other institutional buyers.

The government will determine whether a consumer falls under the bulk category based on average monthly consumption during the previous year, excluding the current month. Government institutions at the Centre, states, Union Territories and local bodies have been kept outside the scope of the restriction.

The move is aimed at preventing excessive stockpiling and ensuring that sugar remains available in the market, particularly during a period when demand traditionally increases.

Authorities will also monitor sugar supplies from mills to bulk consumers, both through direct sales and dealer channels. Sugar consumption will be assessed using GST returns and the relevant HSN code for sugar.

The latest step follows an earlier directive limiting sugar stocks held by dealers to 30 days. Despite these measures, sugar prices have continued to climb.

Government data showed the average retail price of sugar reached Rs 52.30 per kg on August 18, up around 13 per cent from Rs 46.34 per kg a year earlier.

The tighter stock limits are expected to discourage hoarding, improve market availability and help contain further price pressure as demand rises during the upcoming festive season.