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Strict action on government sugar hoarding! Wholesale customers are now allowed to keep only 15 days of stock

Sandy Verma | August 21, 2026 11:24 AM CST

The government has taken a major step to meet the growing demand for sugar and the increasing stocking in the market. Central government has fixed stocking limit for wholesale sugar consumers. Now, businesses and institutions that use large amounts of sugar will not be able to store excess sugar. The new system will come into force from September 1, 2026 and will remain in force till November 30, 2026.

According to the order of the Ministry of Consumer Affairs, Food and Public Distribution, wholesale consumers consuming more than 10 metric tonnes of sugar per month will be allowed to stock a maximum of 15 days of sugar. The government states that such consumers should buy sugar only as per their requirement. Stocking of more than 15 days worth of sugar will not be allowed.

The rule will apply to many major sugar consumers, including confectionery companies, soft drink manufacturers, the food processing industry, sweet shops and other institutional buyers. The government has also clarified the definition of wholesale customer. Establishments that have consumed at least 10 metric tons of sugar per month on an average in the last one year are included in this category. Current month consumption will not be included in this calculation.

The government has not only fixed stock limits, but has also set up a system to monitor sales from sugar mills to large consumers. The quantity of sugar sold by each sugar mill directly to the wholesale consumer or through dealers will be verified using the HSN code associated with the sugar shown in the GST return. This will help the government track how much sugar each consumer has bought and consumed.