New Delhi: The Central Government has announced a nationwide physical verification of sugar stocks held by sugar mills between August 1 and August 14, 2026. The verification drive will be conducted jointly by officials from the Directorate of Sugar & Vegetable Oils and the respective State Sugar or Cane Commissioners to ensure transparency in sugar stock reporting.
June P-2 Return Will Be the Base for Stock Verification
According to the official communication issued by the Department of Food and Public Distribution, the P-2 sugar stock return for June 2026 will serve as the base stock for the inspection. During the verification process, authorities will consider all sugar sold or dispatched during July 2026 while calculating the actual stock available at each mill.
Officials will compare the physical stock present at the mill with the reported stock after adjusting for July sales and dispatches. Any mismatch between the reported and actual stock may invite regulatory action.
Discrepancies May Lead to Legal Action
The government has warned that if significant differences are found during physical verification, the concerned sugar mill may face action under the Essential Commodities Act, 1955 and the Sugar Control Order, 2025, along with other applicable rules and government directives.
The move aims to strengthen compliance, improve transparency in sugar inventory management, and prevent irregularities in stock reporting.
GST Sales Data to Be Cross-Verified
In addition to physical stock verification, the government will also validate the sugar sales reported by mills for July 2026 against GST sales data.
If discrepancies are detected between GST records and the sales reported by a mill, the government may withhold the domestic sugar sale quota for October 2026. Authorities have also indicated that further action may be taken under applicable laws wherever necessary.
Sugar Mills Asked to Maintain Accurate Records
The Directorate has directed all sugar mills to ensure that:
- All sugar sales and dispatches are accurately recorded in official registers.
- Stock records correctly reflect the quantity available at the mill on the day of inspection.
- Relevant documents are readily available for inspection teams.
The order, issued with the approval of the competent authority, is intended to improve monitoring of sugar inventories and ensure compliance across the sugar industry.



