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Govt imposes stock limit of 4,000 quintals on sugar dealers to keep prices under control
Jul-29-2026

In an effort to keep prices of sweetener under control, the government has imposed a stock limit of 4,000 quintals on sugar dealers and also directed that no dealer of sugar should hold stock for more than 30 days. The order would come into force with effect from August 1, 2026, and would remain in force up to November 30, 2026. Earlier, there was no quantitative restriction on dealers of sugar, although the ministry fixes a monthly sale quota for sugar mills.

The decision to impose a stock limit has been taken against the backdrop of an increase in the ex-mill prices of sugar to Rs 45 per kg from Rs 39 per kg in the last three months. The Ministry of Food and Consumer Affairs imposed this restriction using powers under section 3 of the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025. The order would not apply to sugar stocks held on the government account, or by dealers nominated by the State Government or an officer authorised by it to hold stock for distribution through fair price shops under the Public Distribution System. 

The food ministry said that the state governments or Union Territories should fix the stock holding and turnover limits, subject to the condition that the stock holding limit and the turnover period shall not be higher than the limit or period as specified herein. For counting the period of holding of the stock, the date on which any stock is received by the dealer should be included. The ministry asked all dealers to declare and regularly update the stock position of sugar on the portal.

On the government’s decision, industry body ISMA Director General Deepak Ballani said, “We welcome the Government’s continued focus on ensuring a stable and well-regulated sugar supply chain across the country. He said the stock holding limits reflect a balanced and time-tested regulatory approach that has served the trade and consumers well in the past. Ballani noted that this is a prudent and seasonal measure aligned with the government’s broader objective of maintaining price stability and adequate availability of sugar for consumers.
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