The Central government has increased the sugar stockholding limit for bulk consumers from 15 days to 30 days following a slight decline in prices. However, the additional stock for the next 15 days must be sourced from imports under specific schemes.
The decision comes as retail sugar prices have fallen by around 10 per cent from their peak of Rs 65 in August to Rs 58.5.
Ex-mill prices have declined by nearly 25 per cent. The government noted that the slower fall in retail prices shows that the benefits of lower ex-mill prices have not been fully passed on to consumers.
The rise in sugar prices had put centre's policy under scrutiny ahead of the festive season. The government had earlier allowed the import of one million tonnes of sugar to bring down prices. It had also allowed the export of eight lakh tonnes of sugar.
Under the new relaxation, any stock held beyond the existing 15-day limit must be sourced exclusively from sugar imported under the Advance Authorisation Scheme (AAS) or Tariff Rate Quota (TRQ).
To ensure transparency, bulk consumers must declare their sugar stocks every Friday through the online portal of the Department of Food and Public Distribution.
Bulk consumers who use more than 10 metric tonnes (MT) of sugar a month for production or other purposes are currently allowed to hold stocks for up to 15 days of consumption. They had requested an increase in the limit, particularly ahead of the festival season.
The stockholding limit for sugar purchased from the open market will remain unchanged at 15 days of consumption.
The government said the measure aims to balance the interests of bulk consumers while maintaining stability in the domestic sugar market.
“This will provide greater operational flexibility to genuine industrial consumers during the festival season while ensuring that additional stocks are sourced from imported sugar, thus preventing undue pressure on domestic stocks,” an official said.
At a joint meeting with representatives of the Indian Sugar Mills Association (ISMA), the National Federation of Cooperative Sugar Factories and the sugar trade sector, the Secretary of the Department of Food and Public Distribution said the reduction in ex-mill prices had not yet been fully reflected in retail prices.
The government also urged sugar traders, wholesalers and retailers to promptly pass on the benefits of lower ex-mill prices to consumers.
From October 1, 2026, with the start of the new sugar season, sugarcane farmers will receive an increased Fair and Remunerative Price (FRP) of Rs 365 per quintal.
