The Indian government has issued an order fixing a maximum stock limit of 400 tonnes of sugar that any dealer can keep at any point of time till November 30 and traders have been mandated to liquidate excess stock by August 1 from when the directive will be implemented. Besides, the sugar dealers have been asked to sell the sweetener within 30 days from the date of receipt.In a gazette notification on July 28, the Ministry of Food and Consumer Affairs imposed the restriction using powers under section 3 of the Essential Commodities Act, 1955, and the Sugar (Control) Order, 2025.“Central Government hereby directs that no dealer of sugar shall hold any stock for a period exceeding thirty days from the date of receipt of such stock and shall not keep sugar in stock at any time and in any place throughout the country in excess of 4,000 quintals,” the notification said. Further, it has directed that “no dealer of sugar shall hold any stock for a period exceeding 30 days from the date of receipt of such stock.” For counting the period of holding of the stock, the date on which any stock is received by the dealer should be included.States can chip inThe Food Ministry has also said that if any State so desires, it can lower the stock holding limit from 400 tonnes. All the sugar dealers have been asked to declare their stock position of sugar on the portal on a weekly basis.The Ministry said that the decision to impose stock holding limits on sugar dealers has come to curb hoarding, discourage speculative trading and ensure the continuous availability of sugar at reasonable prices. “The measure is aimed at maintaining orderly supplies in the domestic market, safeguarding consumer interests, and ensuring that genuine trade and distribution activities continue without disruption,” it said.The Order, however, has exempt sugar stocks held on the government account, or by dealers nominated by the State government for distribution through ration shops under the Public Distribution System (PDS).The latest Order came a few days after the food ministry decided to undertake a physical checking of sugar stock held by mills during August 1-14. Despite concern over lower opening stock in next season, the government has also threatened mills to stop their domestic sales quota if they are found to sell excess quantity or keep more stock than what has been declared by them.Export banIn May, the government banned export of sugar till September 30 this year with immediate effect to enhance domestic availability and contain prices. The government in February 2026 had allowed exports of nearly 1.6 million tonnes (mt) of sugar for the 2025-26 season (October-September).Industry body ISMA has projected total sugar production for the 2025-26 season at 29.3 mt after ethanol diversion, up from 26.12 mt in 2024-25.On July 17, sugar industry bodies ISMA and NFCSF asserted that there is adequate stock of sweetener in the country and asked institutional buyers as well as wholesale and retail traders to refrain from “speculative buying” amid the recent price rise.The All India Sugar Trade Association (AISTA) on Monday claimed reports of sugar shortage in the country unfounded and asked its members to ensure steady availability of the sweetener across the country, even as ex-factory prices rose about 15 per cent in less than a month.Retail prices surgeAccording to government data, all India average retail sugar price has increased to Rs 47.9/Kg on July 17 from Rs 47.01/Kg a month ago, Rs 46.48/Kg three months back, Rs 46.34/Kg six months ago. In wholesale market, prices have shot up to Rs 4,447.57/quintal as on July 17 from Rs 4,294.70/quintal in past six months.The Government has observed that the recent increase in ex-mill prices of sugar is not supported by the prevailing demand-supply fundamentals. It has also come to notice that hoarding by certain traders, dealers and market intermediaries, along with speculative transactions and paper trade without the actual physical movement of sugar from mills, has contributed to creating an artificial perception of scarcity in the market.“Such practices have resulted in avoidable price volatility and an increase in both ex-mill and retail sugar prices. The government assures consumers that adequate quantities of sugar are available in the country to meet domestic consumption requirements,” it said adding the sugar market will continue to be closely monitored.Published on July 28, 2026