The central government has taken a big step to keep sugar prices under control across the country. The government has issued an order setting a maximum stock limit of 30 days and a holding limit of 4,000 quintals for sugar traders. According to the gazette notification of the Ministry of Food and Consumer Affairs, this new order will come into effect from August 1, 2026 and will remain in effect till November 30, 2026. This decision has been taken to ensure adequate availability in the domestic market in view of the forecast deficit in monsoon. The limit of 4,000 quintals is applicable on any trader in the country. The Ministry has imposed this restriction using the powers given under Section 3 of the Essential Commodities Act, 1955 and the Sugar (Control) Order, 2025. The order clearly states that no sugar trader or dealer will be able to keep more than 4,000 quintals of sugar in stock at any place across the country. The period of holding of stock will be counted from the date of receipt. It has been clarified in the instructions of the Central Government that the period of holding of stock by a trader will be counted from the date on which the trader has received the stock of sugar. Apart from this, traders will not be able to hold the received stock for more than 30 days. Instructions to state governments to set turnover limits The ministry has asked all state governments and union territory administrations to set stock holding and turnover limits at their level. However, states will have to ensure that their limits do not exceed the limit of 4,000 quintals or a period of 30 days set by the Centre. Traders will have to update the data on the portal. The government has given strict instructions to maintain transparency. The ministry has asked all sugar traders and dealers in the country to declare their sugar stock position on the specified portal and keep updating it regularly. Exemption from ban on PDS and government sugar stock: This order will not apply to sugar kept in government account. Additionally, sugar stocks held by state governments through designated dealers or authorized officers for distribution through ration shops (PDS) have been kept out of this restriction. Amidst the forecast of deficient monsoon, the Central Government has already banned the export of sugar to control the prices and increase domestic availability. The government had imposed a ban on sugar export with immediate effect in May itself, the deadline for which has been fixed till September 30. For the current marketing year 2025-26 (ending in September), the government had allowed export of about 16 lakh tonnes of sugar. Production estimated at 29.3 million tonnes this season According to the Indian Sugar Mills Association (ISMA), the total sugar production in the 2025-26 marketing season after ethanol diversion is estimated at 29.3 million tonnes. This is higher than the production of 26.12 million tonnes recorded in the previous 2024-25 season. Industry bodies said – Adequate stock in the country, do not speculate. Amid the recent surge in prices, on July 17, sugar industry bodies ISMA and NFCSF had said that there is sufficient stock of sugar available in the country. He had appealed to institutional buyers, wholesale and retail traders to avoid ‘speculation and panic buying’ amid the rising prices. What is the Essential Commodities Act?
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Stock limit for sugar traders fixed at 4,000 quintals: Center ordered to keep stock for maximum 30 days; Rules will be applicable from 1st August to 30th November
