Govt eases sugar stockholding limit for bulk users to 30 days ahead of festive season
New Delhi, The government on Friday said it has relaxed the stockholding limit for bulk sugar consumers to 30 days from the existing 15 days, as the festive season approaches and demand is expected to pick up.
This limit will now be doubled, the Department of Food and Public Distribution said in a statement, but with a caveat: any stock held beyond the earlier 15-day cap must come exclusively from sugar imported under the Tariff Rate Quota (TRQ) or the Advance Authorisation Scheme (AAS).
The government has already permitted import of 10 lakh tonnes under TRQ, besides allowing domestic sale of export-bound sugar procured under the AAS.
Stock sourced from the open market will continue to be capped at 15 days’ consumption, the ministry clarified.
To keep track of inventories, the government has also introduced a mechanism requiring bulk consumers to declare and disclose their sugar stocks every Friday through the food ministry’s online portal, foodstock.dfpd.gov.in.
The ministry said the decision followed detailed consultations with major bulk consumers, who had sought an enhanced stockholding limit ahead of the festival season.
They had also proposed being allowed to source sugar directly from importers holding TRQ and AAS stock, to ensure uninterrupted supply for industrial use without straining domestic availability.
The government said the step was meant to balance the interests of bulk consumers with the need for stability in the domestic sugar market, offering industrial users more flexibility during the festive months while ensuring additional stock comes from imports rather than adding pressure on local supplies.
Separately, the Centre flagged that while ex-mill sugar prices have fallen by nearly 25 per cent, retail prices have declined by only about 10 per cent from their August peak of Rs 65 to Rs 58.50 currently — indicating that the benefit of cheaper wholesale rates has not fully reached consumers.
At a joint meeting with representatives of the Indian Sugar and Bio-energy Manufacturers Association (ISMA), the National Federation of Cooperative Sugar Factories, and sugar trade bodies, the Secretary of the Department of Food and Public Distribution said the correction at the mill level had not been adequately passed on downstream.
The government urged wholesalers, retailers and the wider trade to immediately transmit the benefit of lower ex-mill prices to consumers, calling on the sugar value chain to keep sugar and sugar-based products affordable through the festive season.
The Secretary said farmers and consumers remained the two pillars of India’s sugar policy, and that the government had worked to balance remunerative returns for sugarcane growers with reasonable prices for consumers.
From October 1, 2026, with the start of the new sugar season, farmers will receive a higher Fair and Remunerative Price (FRP) of Rs 365 per quintal — part of the government’s practice of raising the FRP annually.
The ministry said it would continue to monitor sugar availability and prices closely and take further measures as needed to ensure adequate supply for both consumers and industries such as food processing. PTI
