New Delhi:TheCentre on Thursday imposed a stockholding limit on bulk consumers of sugar, amid concerns over rising prices due to tight supplies ahead of the festival season.

Food Minister Pralhad Joshi, in a social media, announced that bulk consumers using more than 10 tonnes of sugar a month will not be allowed to hold stock beyond what they would consume in 15 days. The food ministry has notified the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, which covers confectioners, soft drink manufacturers, food processing units, sweetmeat sellers and other institutional buyers. The order will come into force from September 1 and remain in effect till November 30.

This follows an earlier order, effective August 1 to November 30, capping stock with sugar dealers at 4,000 quintals for 30 days.

The curbs come against the backdrop of a sharp rise in sugar prices, with ex-mill rates hitting record levels on account of a lower opening stock ahead of the 2026-27 season.

The all-India average ex-mill price rose to Rs 5,400-5,500 a quintal on Tuesday, up from Rs 3,900 a year earlier, according to an industry body. Retail sugar prices have climbed about 13 per cent year-on-year to Rs 52.30 a kg as on August 18, from Rs 46.34 a year ago, as per consumer affairs ministry data. Demand for sugar typically rises between August and November, as the country celebrates major festivals, such as Ganesh Chaturthi, Dussehra, and Diwali. Under the new order, the monthly quantity of sugar sold by each mill to a bulk consumer -- whether directly or through dealers -- will be verified, and consumption will be determined with reference to GST returns filed by sellers and/or buyers, using the relevant HSN code applicable to sugar.