Government Sets Stock Limit on Sugar for Bulk Consumers: Maximum of 10 Tonnes for 15 Days
NEW DELHI: The Indian government has implemented a stock limit on sugar for bulk consumers, including confectionery makers and food processing industries. These entities can now hold a maximum of 10 tonnes of sugar for a period of 15 days. This regulation will be in effect from September 1 to November 30.
The decision comes amid rising sugar prices, which have surged nearly 20% in Maharashtra in August, reaching a record Rs 5,350 per 100 kg. The government is also considering reducing the diversion of sugarcane for ethanol production under its E20 programme, which aims to increase ethanol blending in petrol. This move could potentially increase the availability of sugarcane for sugar production, thereby helping to stabilize domestic prices.
Sugar Prices Surge
The all-India average ex-mill sugar price has reached an all-time high of Rs 5,400-5,500 per quintal, a significant increase from Rs 3,900 per quintal a year ago. This represents a rise of approximately 38-41% over the past year, driven by concerns over tighter supplies ahead of the new sugar season. Retail prices have also seen a notable increase, with the average all-India retail price of sugar rising 13% to Rs 52.30 per kg as of August 18, compared to Rs 46.34 per kg a year earlier.
The industry anticipates that the 2026-27 sugar season, starting October 1, will commence with lower opening stocks. Estimates suggest a carry-forward stock of 40-42 lakh tonnes, with some researchers predicting it could be as low as 32-35 lakh tonnes. This is against an estimated domestic requirement of around 50 lakh tonnes. The current season began with an opening stock of 47 lakh tonnes, and total sugar availability for 2025-26 is estimated at around 320 lakh tonnes, against domestic consumption of 285 lakh tonnes. This could result in a closing stock of about 35 lakh tonnes, raising concerns about availability at the start of the next season.
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