Ahead of the festive season, the Modi government has taken decisive measures to prevent the accumulation of sugar stocks. The central authority has established strict limits on sugar storage, stipulating that only a 15-day supply is permitted. This decree will take effect on September 1st.
Dealers and traders who handle more than 10 metric tons of sugar per month will no longer be able to accumulate stocks beyond the newly set limit. Previously, in August, the government had set a limit of 30 days for sugar dealerships, but this period has now been reduced to 15 days. The central government is actively combating stock accumulation amid rising sugar prices and the approaching holiday season.
Under the new limit, wholesale traders and dealerships consuming more than 10 metric tons of sugar per month must not store supplies for longer than 15 days. This new regulation, effective from September 1st, will remain in force until November 30, 2026. The scope of this rule includes confectionery manufacturers, beverage producers, the food industry, and candy sellers.
The government will closely monitor traders' activities by identifying them based on various criteria, including average monthly consumption over the past year. Furthermore, sales made directly to large consumers from sugar mills or through dealers will be monitored. Sales and consumption will be verified using GST Returns and the HSN code for sugar.
This step taken by the central government before the festive season is significant, as demand for sugar sharply increases from August to November. According to recent data, the price of sugar has reached a record high. Over one month, the retail price of sugar increased by approximately 13-14 percent.
The main goal of changing the sugar storage limit is to prevent speculation, increase product availability, and stabilize prices. Meanwhile, administrative and local authorities located in federal territories will be exempt from this decree.