The Maharashtra government has launched a statewide exercise to physically verify sugar stocks held by mills and traders amid a sharp rise in retail prices and the Centre’s suspicion that hoarding may be contributing to the surge.
Teams from the Food and Civil Supplies Department will inspect traders’ stocks, while the Sugar Commissionerate will verify stocks at sugar factories and check whether sugar sold by mills is being lifted by designated dealers within the stipulated period.
The decision was taken on Friday, following directions from the Union government after retail sugar prices rose sharply. The Centre has attributed the increase to lower closing stocks, higher festive demand and alleged hoarding and speculative activity by some mills and traders.
State food and civil supplies minister Chhagan Bhujbal on Sunday said his department had directed all district supply officers to form teams for surprise inspections at traders’ premises.
“Apart from the teams at the district level, flying squads of our department based in Mumbai will also carry out physical verification of sugar stocks of traders. These teams will check that no trader keeps more than 4,000 quintals of sugar at any given point of time as directed by the Centre,” Bhujbal said.
The Centre’s stockholding restrictions, which came into effect on August 1, will remain in force until November 30. Dealers cannot hold more than 4,000 quintals (400 tonnes) or retain stocks for more than 30 days from receipt.
{{/usCountry}}The Centre’s stockholding restrictions, which came into effect on August 1, will remain in force until November 30. Dealers cannot hold more than 4,000 quintals (400 tonnes) or retain stocks for more than 30 days from receipt.
{{/usCountry}}The Sugar Commissionerate has also begun preparations to verify stocks at sugar factories across Maharashtra.
State sugar commissioner Sanjay Kolte said teams would physically verify stocks at all 208 factories covered by the exercise and check whether sugar sold by mills is lifted by dealers within a week.
The exercise is significant as Maharashtra is one of the country’s largest sugar-producing state. It produced 99 lakh tonnes of sugar during the 2025-26 crushing season, 18 lakh tonnes more than the previous season, according to the National Federation of Cooperative Sugar Factories.
Sources in the Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) alleged that some mill owners in sugar-producing states may have routed officially sold sugar through trading firms linked to them to create an artificial shortage.
“Our feedback is that these mill owners sold their monthly quota of sugar to trading firms which they themselves own or which are owned by their close ones. While the stock is shown officially as sold to traders, in reality they have hoarded it to create an artificial scarcity. They are now dictating the retail price in the market,” a federation functionary said, requesting anonymity.
MSCSFF vice-chairman Pratap Ohal, however, denied wrongdoing by cooperative sugar mills in Maharashtra.
“If any sugar mill owner has resorted to hoarding in any sugar-producing state, the Union government must act against such owners,” he said.
The Centre has taken several measures to improve domestic availability. In July, it imposed stockholding limits on dealers and began physical verification of stocks at sugar mills. It has also kept sugar exports prohibited until September 30, 2026, amid concerns over domestic supplies.
The Centre has urged mills to begin the 2026-27 crushing season 10 to 15 days earlier than usual to bring fresh sugar into the market ahead of the festive season. The season is officially scheduled to begin on October 1.
Farmer leader and Swabhimani Shetkari Sanghatana founder Raju Shetti welcomed the stock verification exercise but said it had come late.
“I had been demanding for over a month that the Centre direct all district administrations through the respective state governments to carry out physical sugar stock verification, especially of the big traders,” Shetti said.
He claimed around 35 lakh tonnes of sugar is currently available in the country, with Maharashtra accounting for about 25 lakh tonnes. He alleged that some large dealers had hoarded sugar and that stocks were also being clandestinely sold to neighbouring countries, including Nepal and Bangladesh.
“These elements must be identified and action taken against them,” Shetti said.
The Centre’s intervention comes amid a sharp rise in sugar prices. In late July, the national average retail price reached ₹49 per kg, compared with ₹46.50 a month earlier and ₹46 a year earlier. Ex-mill sugar prices in Maharashtra rose to around ₹42,000 per tonne from about ₹38,000 the previous month.
The government has maintained that the rise is not attributable to a single factor. Lower closing stocks, expectations of tighter supplies in the coming season and higher demand ahead of the festive period have also contributed to market pressure.