Punjab tightens monitoring of traders to check rising sugar prices

Punjab steps up inspections amid price surge

Punjab has intensified inspections of sugar traders after receiving complaints that some dealers are holding stocks beyond the permitted 4,000-quintal (400-tonne) limit, raising concerns about artificial scarcity and further price increases ahead of the festive season, as reported by The Tribune.

The Food Supplies Department is checking traders' physical inventories against the quantities they have declared on the Food Stock Monitoring Portal. The move follows a state government directive on August 17 requiring sugar dealers to register on the portal, upload their current stocks, and update the details every Friday.

The Centre has capped sugar stocks at 4,000 quintals, or 400 tonnes, at any one time or place. Dealers are also barred from retaining sugar for more than 30 days from the date of receipt. The restrictions, in force until November 30, are aimed at preventing hoarding and black marketing.

Officials said the complaints have raised concerns that traders may be holding stocks acquired beyond the permissible limit instead of releasing them into the market. District officials have been instructed to conduct regular physical inspections and verify the stock declarations submitted online. Dealers who fail to register on the portal or provide false, incomplete, or delayed information could face action under the Essential Commodities Act, 1955.

However, traders said the 4,000-quintal ceiling was unlikely to affect most genuine wholesalers, whose stocks generally remain below the prescribed limit.

Prices rise sharply

The inspections come as sugar prices have risen sharply across Punjab. Wholesale loose sugar is currently selling at around Rs 61-68 per kg, up from nearly Rs 45 a week ago. Retail prices have increased to Rs 65-70 per kg from around Rs 50 during the same period. Traders have also reported shortages of branded sugar, citing irregular supplies to the market.

Pritam Singh, president of the Wholesale Sugar Traders Association, Jalandhar, attributed the steep price rise to inadequate supplies from sugar mills amid limited availability of sugarcane. He said sugar prices normally increase by Rs 200-500 per quintal ahead of the festive season, but this year the rise has already reached Rs 700-800 per quintal.

With festive demand expected to rise, traders said sugar prices could remain elevated until fresh supplies arrive after the new sugar production season begins after October.

Harsharan Singh Brar, District Food Supplies Controller, Jalandhar, said the department had received instructions from its headquarters in Chandigarh to ensure compliance with the stock restrictions.

UP chief minister denies shortage

Meanwhile, in Uttar Pradesh, Chief Minister Yogi Adityanath has said there is no shortage of sugar in the state and urged consumers not to worry amid concerns about its availability, according to an official statement reported by Daily Excelsior.

In a review meeting, Adityanath said 179.38 lakh quintals of sugar are currently available with sugar mills in the state: 23.60 lakh quintals with cooperative mills, 5.28 lakh quintals with state-run corporation mills, and 150.50 lakh quintals with private mills. Sugar mills have also sold 235 lakh quintals of sugar during June and July, most of which is still available in the open market, the statement added.

The chief minister directed that sugar mills be operated from October 15 if required to meet demand. He appealed to people to beware of those spreading misinformation about the sugar shortage and directed officials to take strict action against black marketing and hoarding.

As per the Centre's directions, dealers cannot hold sugar stock for more than 30 days and cannot keep more than 400 tonnes at a time. Bulk consumers with monthly consumption of 10 metric tonnes or more cannot hold stocks exceeding 15 days' requirement. Sugar mills are also required to sell their monthly quota within seven days of the date of sale.

The chief minister directed all district magistrates to physically verify the stocks at registered sugar mills and warehouses of wholesale and retail traders and submit reports on actual availability. He also ordered strict action against those holding stocks beyond prescribed limits or indulging in hoarding. Officials were asked to continuously monitor sugar availability and prices and immediately inform the government of any artificial shortage or abnormal increase in prices.

It was also informed that sugarcane cultivation is expected to cover 28.14 lakh hectares during the 2026-27 crushing season, with sugar production estimated at around 90 lakh tonnes.

GB Nagar enforces stock limits

In Gautam Budh Nagar, the administration has been directed to ensure compliance with the Centre and Uttar Pradesh government's stock limits for sugar dealers and to raise consumer awareness about adequate availability, as reported by Hindustan Times.

"Despite adequate stocks of sugar, there have been concerns over a rise in prices. Teams have been constituted across the district to prevent illegal hoarding and profiteering and ensure that adequate stocks remain available to the public," additional district magistrate (finance and revenue) Ajit Kumar Singh said.

Retail sugar prices in the district rose from Rs 48.18 per kg on July 20 to Rs 55.70 per kg on August 20.

The Centre has also allowed duty-free imports of one million tonnes of raw sugar and tightened stockholding restrictions for bulk consumers. Under the stock limit applicable to dealers from August 1 to November 30, a dealer cannot store sugar for more than 30 days from the date of receipt and cannot hold more than 4,000 quintals (400 tonnes) at any time or at any location. The 30-day period includes the date the stock is received.

The restrictions, issued under the Essential Commodities Act, 1955 and the Sugar (Control) Order, 2025, do not apply to stocks held in government accounts or stocks stored by dealers designated by the state government for distribution through fair-price shops under the public distribution system.

"Strict compliance with the prescribed stock limits will be ensured in Gautam Budh Nagar. The teams have been directed to conduct regular inspections and take action as per rules wherever irregularities are found," Singh said.

Centre cites multiple factors for price rise

The Centre has attributed the recent price rise to lower-than-expected sugar production, higher festive demand, weather-related crop damage, tightening global supplies, speculation, and hoarding, while rejecting claims that diversion of sugar for ethanol production was responsible, as reported by Hindustan Times.