Sugar stock scrutiny on the rise as prices hit record high

Pune: The government has stepped up scrutiny of sugar stocks as prices surge to record highs, with the food ministry seeking consumption data from large industrial buyers and conducting physical checks at mills.

Bulk consumers, including soft-drink and ice-cream makers, sweetmeat sellers and food processors, account for an estimated 65% of India's sugar consumption. The ministry has asked sugar mills to furnish bulk consumer-wise details of buyers to whom 500 metric tonnes or more of sugar was sold annually, either directly or through agents, in the 2025-26 financial year. The move comes as officials conduct physical stock checks at mills.

The ministry of consumer affairs has written a letter to the sugar mills to share bulk consumer-wise sugar sales data.


"During the physical verification of sugar stocks conducted by this department in various states, it has been observed that, in certain cases, sugar stock which has been sold to bulk consumers was found stored in the godowns of sugar mills. However, such stock was reportedly not reflected in the stock details furnished by the sugar mills in P-2form," states the letter, reviewed by ET.

After the sugar prices touched record high levels, the central government first imposed stock limits on the sugar dealers and announced physical verification of stocks held by the sugar mills from August 1 to August 14. The letter was written following the findings of the physical verification, industry sources said.