Govt orders large dealers to limit holding sugar inventories to 15 days as prices hit record high

The Indian government has imposed stricter limits on sugar stockholding by large dealers to curb record-high prices, especially ahead of the upcoming festive season. According to a notification issued by the Department of Food and Public Distribution on August 19, dealers processing over 10 metric tons of sugar monthly will not be permitted to hold inventories for more than 15 days.

This stricter stockholding limit, effective from September 1 until November 30, 2026, aims to ensure adequate supply during the festival period when consumption typically spikes. Bulk consumers such as confectioners, soft drink manufacturers, food processors, sweetmeat sellers, and institutional buyers meeting the threshold will be subject to this restriction.

However, government and local bodies remain exempt. The government has also considered measures like limited duty-free imports to increase sugar supply and tackle rising prices, which have surged by 10% in the past month and are projected to stay high due to tightening supplies and increased demand. Factors contributing to the price surge include patchy rains affecting the sugarcane crop.