‘Can’t hold more than 10 tonnes’: Govt sets 15-day sugar stock limit for bulk consumers

The Indian government has introduced a stock limit of 10 tonnes for sugar for bulk consumers, including confectionery makers, soft drink manufacturers, food processing industries, sweetmeat sellers, and other institutional buyers. This restriction will be in place from September 1 to November 30.

The move comes amid a surge in sugar prices, with the all-India average ex-mill sugar price reaching an all-time high of Rs 5,400-5,500 per quintal, nearly 38-41% higher than a year ago. This price increase has also affected retail markets, with the average retail price of sugar rising by 13% to Rs 52.30 per kg.

The government's decision is influenced by the growing trend of diverting sugarcane towards ethanol production under the government's E20 programme. This shift could potentially free up more cane for sugar production, helping to ease domestic sugar prices. Furthermore, the government is considering reducing sugarcane diversion for ethanol during the upcoming sugar season, which might alleviate the sugar supply situation.

The recent price surge follows concerns over tighter sugar supplies ahead of the new sugar season starting on October 1. Industry estimates suggest that the carry-forward stock for the 2026-27 sugar season may be as low as 32-35 lakh tonnes, compared to an estimated domestic requirement of around 50 lakh tonnes. This could lead to a closing stock of approximately 35 lakh tonnes at the start of the following season, raising concerns about sugar availability.