Directive to Sugar Dealers: Stock Limit Set at 400 Tonnes

29-Jul-2026 09:11 PM

New Delhi. The Union Department of Food and Public Distribution has directed registered dealers across the country not to hold sugar stocks exceeding 4,000 quintals (400 tonnes) at any single location at one time. This order comes into effect on August 1 and will remain valid until November 30, 2026. If dealers hold sugar stocks beyond this permitted limit, they must sell off the excess quantity as soon as possible. Every dealer is mandatorily required to declare their sugar stock on the Ministry's portal.

Open market sugar prices have risen sharply in recent weeks, and the government apprehends further price hikes during the festive season, which begins after mid-August. Industry and trade bodies state that there are adequate sugar stocks in the country and there is no need for panic buying; such buying has been a key factor driving the steep rise in sugar prices.

The government has decided to initiate inspections starting August 1 to physically verify spot stocks and sales figures at sugar mills. This drive will continue until August 14. Dealers have also been strictly instructed to sell their sugar in the market within 30 days of receiving the stock.