New Delhi | The government on Tuesday directed that no dealer of sugar should hold stock for more than 30 days and also imposed a stock limit of 4,000 quintals as part of its efforts to keep prices of sweetener under control.

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.

In a gazette notification, 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.

"... 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.

To keep prices under check amid a forecast of a deficit monsoon, the Centre has already banned sugar exports.

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.

As per the notification, 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.

In May, India banned the export of sugar till September 30 this year with immediate effect, a move aimed at enhancing domestic availability and containing prices.

The government has allowed exports of nearly 16 lakh tonnes of sugar for the 2025-26 marketing year ending September.

India's sugar production is estimated at 279 lakh tonnes for the 2025-26 marketing season (October-September) after ethanol diversion, up from 261 lakh tonnes 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.