Govt doubles sugar stock limit for bulk consumers to 30 days, restricts extra stocks to imports

The government on Friday doubled the stockholding limit for bulk consumers of sugar to 30 days from 15 days, but said stocks held beyond the existing limit must be sourced exclusively from imported sugar under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ).

The stockholding limit for sugar purchased from the open market will remain unchanged at 15 days of consumption, the Ministry of Consumer Affairs, Food and Public Distribution said.

The measure comes ahead of the festival season and follows consultations with major bulk consumers, who had sought greater flexibility to ensure uninterrupted supplies for industrial use.

The government said bulk consumers holding stocks beyond 15 days would have to source the additional quantity from imported sugar available under AAS and TRQ, which will ensure that the relaxation does not put additional pressure on domestic supplies.

It has also put in place a mechanism for bulk consumers to declare and disclose their sugar stocks every Friday through the Department of Food and Public Distribution's online portal.

Bulk consumers using or consuming more than 10 tonnes of sugar a month as a raw material for production, consumption or use are currently permitted to hold stocks equivalent to no more than 15 days of consumption.

Meanwhile, retail sugar prices have declined by around 10% from their peak of ₹65 per kg in August to about ₹58.50 per kg, while ex-mill prices have fallen by nearly 25%, according to the ministry.

The government, however, said the slower decline in retail prices indicated that the reduction in ex-mill prices had not been fully transmitted to consumers through the supply chain.

It called upon the sugar industry and trade to ensure that sugar and sugar-based products remain affordable during the forthcoming festival season.

The Secretary, Department of Food and Public Distribution, said farmers and consumers were the two central pillars of India's sugar policy and that the government had been working to balance remunerative returns for sugarcane farmers with stable and reasonable sugar prices for consumers.

Sugarcane farmers will receive an increased Fair and Remunerative Price (FRP) of ₹365 per quintal from October 1, 2026, the beginning of the new sugar season.

The government said it would continue to monitor sugar availability and prices in the domestic market and take appropriate measures, as necessary, to ensure adequate supplies for consumers as well as food processing and other industries.