Government Caps Sugar Stocks for Bulk Consumers at 15 Days Amid Rising Prices

The government has tightened sugar stockholding norms for bulk consumers, allowing them to hold inventories for a maximum of 15 days from September 1 to November 30, 2026. The move comes amid elevated sugar prices and ahead of the festival season, when demand for the sweetener is expected to rise sharply.

According to an order issued by the Department of Food and Public Distribution on August 19, the restriction will apply to bulk consumers using or consuming more than 10 metric tonnes of sugar per month as a raw material. The order covers confectioners, soft drink manufacturers, food processing companies, sweetmeat sellers and other institutional buyers meeting the prescribed consumption threshold.

The government has, however, exempted institutions belonging to the Central or state governments, Union Territory administrations and local bodies from the stockholding restrictions.

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Under the order, bulk consumers cannot keep sugar stocks for more than 15 days of their consumption. Their average monthly consumption will be calculated based on the previous one year, excluding the current month. The quantity of sugar sold by individual mills to bulk consumers, either directly or through dealers, will also be verified.

Consumption and sales will be assessed with reference to Goods and Services Tax returns filed by sellers and buyers, using the applicable Harmonised System of Nomenclature (HSN) code for sugar.

The government’s move comes at a time when sugar prices have reached record levels and concerns are growing over supplies during the festival-heavy period from August to November. Ganesh Chaturthi, Dussehra and Diwali are expected to boost demand, particularly from confectionery, biscuit, food-processing and sweet manufacturers that typically build inventories ahead of festivals.

The latest measure follows an earlier government directive limiting dealers’ sugar stocks to 30 days. The reduction to a 15-day limit for bulk consumers signals a further tightening of inventory management to prevent excessive stock accumulation and support market supplies during the peak-demand period.