Sugar stock scrutiny on rise as prices hit roofs

Pune: The Indian government is intensifying its scrutiny of sugar stocks amid soaring prices reaching record peaks. The food ministry is proactively seeking consumption data from major industrial buyers and conducting on-site inspections at sugar mills. Bulk consumers, comprising soft-drink manufacturers, ice-cream producers, sweetmeat sellers, and food processors, represent an estimated 65% of India's sugar consumption.

To gather accurate information, the ministry is requesting sugar mills to disclose detailed records of sales to bulk consumers, those who have purchased 500 metric tonnes or more of sugar annually, either directly or through intermediaries, during the 2025-26 fiscal year. This initiative follows the ministry's physical stock checks at various mills across the country, revealing instances where sugar previously sold to bulk consumers was still stored in the mills' warehouses, despite not being accurately reported in the mills' P-2 forms, as outlined in a letter reviewed by economic times.