Amid skyrocketing sugar prices, the government has imposed a stock limit on bulk consumers, restricting the quantity they can hold to a maximum of 15 days’ consumption.Bulk consumers include confectionery makers, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers.”Under the Sugar (Stockholding Limit of Bulk Consumers) Order, 2026, any bulk consumer using or consuming more than 10 metric tonnes of sugar per month as a raw material for production, consumption or use in any manner will not be permitted to hold sugar stocks for more than 15 days of such consumption or use. The stock limit is applicable from September 1 to November 30,” a statement said.The restriction is aimed at regulating the quantity of sugar held by large institutional and industrial consumers during the specified period.The order defines a bulk consumer as a confectioner, soft drink manufacturer, food processing industry, sweetmeat seller or any other institutional buyer consuming at least 10 metric tonnes of sugar per month, on average, during the preceding one year, excluding the current month.However, the stockholding restrictions will not apply to institutions belonging to the central government, state governments, Union Territory administrations or local bodies.The surge in sugar prices comes amid growing focus on the diversion of sugarcane towards ethanol production under the government’s E20 programme. The government is considering reducing the amount of sugarcane diverted for ethanol in the sugar season beginning in October, which could leave more cane available for sugar production and help ease domestic prices.India has increasingly used sugarcane and its by-products for ethanol as it pushes towards 20 per cent ethanol blending in petrol. The latest consideration to increase sugar availability comes after wholesale sugar prices in Maharashtra rose nearly 20 per cent in August to a record Rs 5,350 per 100 kg, despite government assessments that overall domestic supplies remain sufficient until the next sugar season begins.The government has also prescribed a mechanism to verify sugar purchases and consumption by bulk consumers.The monthly quantity of sugar sold by each sugar mill to a bulk consumer, whether directly or through dealers, will be verified with reference to the Goods and Services Tax (GST) returns filed by sellers and/or buyers.Meanwhile, the all-India average ex-mill sugar price touched an all-time high of Rs 5,400-5,500 a quintal earlier this week, up sharply from Rs 3,900 a quintal a year ago, according to industry estimates.The average all-India retail price of sugar also rose 13 per cent to Rs 52.30 per kg on August 18, from Rs 46.34 per kg a year earlier, according to data from the Ministry of Consumer Affairs.Total sugar availability for 2025-26 is estimated at around 320 lakh tonnes, against domestic consumption of 285 lakh tonnes. This would leave a closing stock of about 35 lakh tonnes, adding to concerns over availability at the start of the next season.The government had last month limited dealers to holding sugar stocks for up to 30 days. However, prices have continued to rise, with sugar prices increasing by about 10 per cent over the past month to a record high.