The government on Friday relaxed the stockholding limit for bulk sugar consumers to 30 days from the existing 15 days, ahead of the festive season when demand for the sweetener is expected to rise.
According to the Department of Food and Public Distribution, bulk consumers using more than 10 tonnes of sugar a month for production, consumption or other industrial purposes can now hold stocks for up to 30 days of their requirement.
However, the additional stock held beyond the earlier 15-day limit must be sourced exclusively from sugar imported under the Advance Authorisation Scheme (AAS) or Tariff Rate Quota (TRQ). Sugar purchased from the open market will continue to be restricted to 15 days' consumption.
The government has already permitted the import of 10 lakh tonnes of sugar under the TRQ. It has also allowed the domestic sale of export-bound sugar procured under the AAS.
To monitor inventories, bulk consumers will now be required to declare and disclose their sugar stocks every Friday through the Department of Food and Public Distribution's online portal.
The decision followed consultations with major bulk consumers, who had sought a higher stockholding limit ahead of the festive season. They had also requested permission to directly source sugar from importers holding stocks under the TRQ and AAS.
The government said the move is aimed at ensuring uninterrupted sugar supplies for industrial consumers while maintaining stability in the domestic market.
The Centre has taken several measures in recent months to improve domestic sugar availability and contain prices. These include permitting duty-free imports of 10 lakh tonnes of raw sugar and tightening stockholding limits for dealers.
The government has also urged wholesalers, retailers and other members of the sugar trade to pass on the benefit of lower ex-mill prices to consumers. According to the Food Ministry, ex-mill sugar prices have fallen by nearly 25 per cent, while retail prices have declined by around 10 per cent from their August peak.
From October 1, 2026, sugarcane farmers will receive a higher Fair and Remunerative Price (FRP) of Rs 365 per quintal for the new sugar season.
The government said it will continue to monitor sugar availability and prices and take further measures, if required, to ensure adequate supplies for consumers and industries during the festive season.
