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Informist, Saturday, Jul. 25, 2026

 

--Govt: To inspect sugar mills from Aug 1-14 to verify stocks 

--Govt: Sugar mills' actual stock position and sales records must tally

 

MUMBAI – Following the recent surge in prices of sugar, the government has decided to inspect sugar mills physically during the first 14 days of August to verify the stocks held. The government has directed mills to correctly record all dispatches and sales in books and ensure that they reflect the actual stock position available with the mill on the date of inspection. "Stock verification teams will comprise officers from the Directorate of Sugar and Vegetable Oil, Government of India, and State Government," the Department of Food and Public Distribution said in a letter dated Friday.

 

Over the past few weeks, sugar prices had risen more than 15% on panic buying amid speculation that supplies could tighten in the coming months. In addition, deficient rainfall in the current monsoon season added a weather premium to sugar prices. During Jun. 1–Jul. 24, the cumulative rainfall over the country was 16?low normal at 319.2 millimetres.

 

Last week, the sugar market was discussing possible government intervention to check prices by releasing weekly sales quotas, imposing stockholding limits for wholesale traders and bulk consumers, or even permitting zero-duty imports. 

 

In the letter to mills, the food department said it will treat stock reported by mills in their returns for June as "the base stock" for physical verification and any discrepancy with July sales or the stock position on the date of inspection will be penalised. The government will also validate the sales data against goods and services tax data for July. In case of a discrepancy, the department said it "may not allocate" monthly sales quota for October for such mills.

 

"During the course of physical verification, if the stock reported in the P-2 return for June, 2026, after accounting for sales and dispatches made during July, is found to be at variance with the physical stock available at the sugar mill, such discrepancy shall be considered as violation of Sugar Control Order," it said. 

 

Every month, the government fixes the maximum quantity of sugar that mills across the country can sell to support prices and help mills clear the arrears of sugarcane farmers. In July, the government had asked mills across the country to sell 2.2 million tonnes of sugar.

 

The sales quota for August is due to be announced next week. Traders expect the government to set the August sales quota higher than the quota for July because it is aiming to increase supplies and check prices.  End

 

Reported by Afra Abubacker

Edited by Rajeev Pai

 

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