Centre imposes stockholding limit on bulk consumers to contain sugar prices

Representational Image. File pic.

In an effort to contain the rising sugar prices, the Indian government on Thursday imposed a stockholding limit on bulk consumers, directing those consuming more than 10 metric tonnes to not hoard the stock for more than 15 days.

The notification issued by the Ministry of Consumer Affairs, Food and Public Distribution said bulk consumers using over 10 metric tonnes of sugar a month as raw material for production, consumption or use cannot hold stock beyond 15 days of such consumption, according to news agency IANS.

Who are the bulk consumers?

The government has defined bulk consumers to include confectioners, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers consuming at least 10 metric tonnes of sugar a month on average during the last one year, excluding the current month.

However, institutions belonging to the central or state governments, Union Territory administrations and local bodies have been exempted from the order.

The government will verify the monthly quantity of sugar sold by each sugar mill to bulk consumers either directly or through dealers.

Sugar consumption will be determined with reference to Goods and Services Tax (GST) returns filed by sellers or buyers using the relevant Harmonised System of Nomenclature (HSN) code for sugar, IANS said.

Why the government is imposing a stockholding limit on bulk consumers?

Sugar prices have witnessed a sharp surge, with ex-mill rates hitting record highs on account of lower opening stock ahead of the 2026-27 season, according to news agency PTI.

Retail sugar prices have jumped around 13 per cent year-on-year to Rs 52.30 per kg as on August 18 from Rs 46.34 per kg, as per the official data.

The order comes into effect from September 1 and will remain so until November 30, which is largely during the festive season. During this period, festivals such as Janmashtami, Ganesh Chaturthi, Dussehra, Diwali would be celebrated and typically, there is more demand for sweets and bulk consumers stock their inventories to meet this demand.

The government had earlier capped the stock with sugar dealers at 4,000 quintals for 30 days, effective August 1 to November 30.

(With inputs from IANS and PTI)