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New Delhi: The government has tightened sugar stockholding limits in a bid to control rising prices ahead of the festive season. Under the new order, dealers who handle more than 10 metric tonnes of sugar per month will be allowed to maintain inventory for a maximum period of 15 days.

The revised restriction will come into effect from September 1 and will remain applicable until November 30.

Move Comes Ahead of Festival Demand Surge

The decision has been taken at a time when sugar demand traditionally rises between August and November due to major festivals such as Ganesh Chaturthi, Dussehra, and Diwali.

During this period, household consumption increases along with demand from industries such as confectionery and biscuit manufacturers.

Sugar Prices Reach Record Levels

Sugar prices have witnessed a sharp increase in recent weeks, creating concerns for consumers and the government. According to industry estimates, the average ex-mill sugar price has reached around Rs 5,400-5,500 per quintal, compared with nearly Rs 3,900 per quintal a year ago.

Retail sugar prices have also increased, with the average price reaching around Rs 52 per kilogram in August, according to government data.

Supply Concerns Add Pressure

The government's decision comes amid concerns over sugar availability for the 2026-27 season, which begins from October 1.

Industry estimates suggest that opening sugar stocks could decline significantly compared to previous years. Some estimates indicate stocks may remain below the country's monthly requirement, adding pressure on supplies.

Government Exploring More Steps

Earlier, the government had imposed a 30-day stock limit on sugar dealers. However, with prices continuing to rise, authorities have now introduced stricter inventory restrictions.

The government is also considering steps such as limited duty-free imports to improve availability and keep prices under control during the festive season.