As sugar prices started soaring, the Maharashtra government on Friday issued a Government Resolution (GR) to curb unauthorised hoarding of sugar and take action against those involved in hoarding and black marketing in the state.
According to the GR issued by the Food, Civil Supplies and Consumer Protection Department, apart from government institutions and authorised distributors, no one is permitted to keep sugar stocks for more than 30 days from the date of receipt. Additionally, the sugar stock held should not exceed 4,000 quintals.
The GR stated that sugar is also used as a raw material for manufacturing several products, and such companies or units can use only ten metric tonnes of sugar per month. Big consumers can keep sugar stocks for only 15 days. The rules outlined in the GR will remain in effect until November 30, 2026.
The GR further stated that, as per the central government's instructions, big sugar sellers and distributors must immediately register themselves on the government portal by providing details of their current sugar stock, when it was received and the disposal period. The information on the portal must be updated every Friday.
“If the sugar distributors and sellers fail to register or upload the given information on this portal, or they fill in the wrong and false information, then action would be taken against them. Five-member teams will be formed at every district that include District Food and Civil Supply officer, and police inspectors who are authorised to carry out inspections and raids to check the sugar stock and find out irregularities and initiate action,” the GR said.
According to the central government, sugar prices have increased in recent weeks, rising from Rs 48.18 per kg on July 20, 2026, to Rs 55.70 per kg on August 20, 2026. This reflects an increase of around 15.6% within one month. However, sugar is being sold for over Rs 70 per kg in the market.
The government said that the current uptick largely reflects short-term supply and market factors rather than a shift in the underlying price trend. The present increase in sugar prices is due to a combination of factors, including lower-than-expected domestic production, increased demand ahead of the festive season, weather-related damage to the sugarcane crop, tightening global sugar supplies and rising prices, and speculation and hoarding by some sections of the industry.
Sugar production during the current season is expected to be around 306 LMT, compared with the initial estimate of around 343 LMT. Production has been affected by two factors: borer disease and waterlogging caused by excess rainfall. However, despite the lower-than-estimated production, adequate sugar stocks are available in the country to meet domestic demand. The new crushing season will begin in October 2026.
