Centre tightens sugar stock curbs amid record prices, bulk buyers face 15-day cap

Any bulk consumer using or consuming more than 10 tonnes of sugar a month will not be allowed to hold stocks for more than 15 days.

The central government has tightened the sugar stockholding limits, restricting large industrial buyers from holding more than 15 days of their requirement from September, as a sharp rise in sugar prices raises concerns about the availability of the sweetener ahead of the festive season.

The order will come into force on September 1 and remain in force until November 30, the notification said. (File picture)

The move assumes significance as the government is not merely tightening controls on traders, it is extending stock restrictions to the large consumers who buy sugar as a raw material — including confectioners, soft-drink manufacturers, food-processing companies, sweetmeat sellers and other institutional buyers.

Under an order issued on August 19, any bulk consumer using or consuming more than 10 tonnes of sugar a month will not be allowed to hold stocks for more than 15 days. The restriction will apply from September 1 to November 30. Government institutions and local bodies have been exempted.

Sugar prices have risen sharply in recent weeks with wholesale sugar prices in key markets such as Kolhapur touching a record ₹53.50 per kg this week. The increase comes as demand typically strengthens between August and November because of Ganesh Chaturthi, Dussehra and Diwali.

This comes after government in July, ordered sugar dealers not to hold stocks for more than 30 days and capped their total stock at 4,000 quintals. That order came into effect on August 1 and is valid until November 30.