New Delhi: The central government has imposed strict stockholding limits on bulk industrial consumers to curb escalating domestic sugar prices ahead of the upcoming festival season. Under the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, large-scale commercial buyers utilizing more than 10 metric tonnes of sugar monthly will be restricted from holding inventory exceeding 15 days of their average consumption requirements. The regulatory mandate will remain in effect from September 1 to November 30.
The restriction encompasses beverage manufacturers, confectionery makers, sweetmeat vendors, food processing units, and other major institutional purchasers, while exempting public sector bodies and government-run institutions. To ensure compliance, monthly procurement figures and factory dispatch volumes will be cross-verified against Goods and Services Tax filings submitted by mills, dealers, and purchasing entities. The measure follows earlier curbs introduced last month that restricted trade dealers to a maximum of 30 days of inventory.
The price surge coincides with heightened cane diversion toward ethanol manufacturing under the national E20 blending initiative, prompting authorities to evaluate scaling back ethanol diversion for the upcoming sugar season starting in October to bolster retail availability. Wholesale and ex-mill rates have surged to record peaks across key producing regions, with average retail prices rising 13 per cent year-on-year to Rs 52.30 per kilogram. With total availability for the 2025-26 period estimated at 320 lakh tonnes against a domestic requirement of 285 lakh tonnes, policymakers aim to ease supply pressures and stabilize kitchen budgets.
