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Informist, Friday, Aug. 14, 2026

 

--Govt: Mills must deliver sugar stocks within 7 days of sale 

--Govt:Some sugar mills' sales at beginning of month, but dispatch month-end

--Govt: Delayed dispatches leading to artificial scarcity, speculative buys

--Govt: Will continue physically verifying sugar mills to ensure compliance 

NEW DELHI – The government has mandated that sugar mills must deliver stocks within seven days of sale to dealers or bulk consumers to improve supplies and prevent artificial scarcity and speculative activities in the market. The order is valid till Nov. 30, and non-compliant mills will face legal action, according to the Department of Food and Public Distribution. 

 

"It has come to the notice of this Department that certain sugar mills are selling sugar at the beginning of the month. However, the dispatch/lifting of the same is being done by the buyers till the end of the month," the food department said. "No sugar mill shall retain sugar stock in its premises for more than seven days after sale to any dealer," it said in a letter to mills Friday. 

 

The letter comes after the government recently conducted an inspection drive to physically verify mills' stock positions and validate reported sales data with goods and services tax entries. The government said it observed that some mills were holding excess sugar stock than what was reported to the government. Certain mills were also dispatching less sugar than what the government had allocated as sales quota and furnishing misleading information to the government.  

 

On Friday, the government said it would continue to inspect mills to verify stocks and ensure compliance. The government has been increasingly scrutinising the sugar market following the recent surge in prices. Ex-mill sugar prices have been rallying, with intermittent price corrections since June, due to panic buying and speculation that supplies could tighten in the coming months. Concerns about deficient rainfall have also added a weather premium to prices. 

 

To check prices and ensure adequate supplies, the government in July imposed a stockholding limit on traders for four months starting August. Despite government interventions, sugar prices continue to rise amid concerns over stock availability and strong demand ahead of the festival season. On Friday, sugar prices rose INR 50-INR 60 per 100 kilograms to INR 5,000-INR 5,090 per 100 kg in Mumbai, according to traders. 

 

The market has been discussing various possible government interventions, including release of weekly sales quota for mills and even permitting sugar imports at zero duty. So far, the government has not imposed a weekly sales quota for mills but has mandated stock delivery within a week, and continues to administer sales through monthly sales quotas.  End

 

Reported by Afra Abubacker

Edited by Avishek Dutta

 

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