Govt halves bulk sugar stock limit to 15 days as prices surge

Pune: The government halved the stockholding limit for bulk sugar consumers to 15 days, intensifying efforts to contain record prices just as festive demand begins to build. The move announced late Wednesday was followed by an order requiring sugar mills to report sales, buyers, and price levels during August 17 to 19, as ex-mill prices surged about ₹10 a kg, or 20%, in the past four to five days.

New Delhi is tightening market scrutiny amid concerns over hoarding and an acute squeeze in supplies ahead of the August-November festive season, while assessing whether imports are needed to ease the shortage, industry executives told ET.

The Ministry of Consumer Affairs, Food and Public Distribution issued an urgent directive requiring sugar mills across India to submit detailed sales recordsfrom August 17 and August 19.

Sugar mill executives have been asked to report every transaction individually. The mandated details include the date of sale, exact quantity sold in quintals, price per quintal, and comprehensive buyer information such as name, address, phone number, and GST identification, according to the latest order issued by the Directorate of Sugar & Vegetable Oils.

Terming the order as ‘most urgent’, the authorities set a strict deadline for submission of the data on Thursday.

“This is more than a data request,” said a senior sugar exporter, who didn’t want to be named. “The main objective of asking for the three-day data is real-time price and transaction surveillance, rather than simply collecting routine data. …gives the government a much clearer picture of what is actually happening in the market.”