Business EconomyPosted at: Sep 18 2026 6:21PM


Centre raises bulk sugar stock limit to 30 days to ensure adequate supplies

New Delhi, Sep 18 (UNI) The government has relaxed sugar stockholding norms for bulk users ahead of the festive season, allowing them to maintain inventory for up to 30 days of consumption. However, the additional stock beyond the existing 15-day ceiling will have to come exclusively from eligible imports under the Advance Authorisation Scheme (AAS) or Tariff Rate Quota (TRQ).
The Department of Food and Public Distribution (DFPD) said the decision is intended to improve supply availability for industrial users without adding pressure on domestic sugar stocks.
Under the revised rules, sugar purchased from the domestic market can still be stocked only up to 15 days of consumption. Bulk consumers can build inventory beyond this level only by sourcing imported sugar covered under the AAS and TRQ routes.
The relaxation comes ahead of the festive season, when demand for sugar typically rises across several segments. The government had earlier permitted duty-free imports of 1 million tonnes of raw sugar on August 21 to boost domestic availability and address price pressures.
The revised stockholding rules follow discussions with large institutional and industrial consumers. These users had sought a higher inventory ceiling and the ability to directly purchase imported sugar held by importers under the two eligible schemes.
The stockholding rules apply to consumers using more than 10 tonnes of sugar every month for manufacturing, industrial consumption or other production-related activities. Such bulk users are required to report their sugar inventories every Friday through the DFPD’s online system.
As per the government data, India consumes around 28-28.5 million tonnes of sugar annually. Domestic production was approximately 28 million tonnes during the 2025-26 sugarcane crushing season. Industrial and institutional consumers—including food and beverage manufacturers, hotels, restaurants, catering businesses and processed-food companies—account for nearly 60-65 per cent of overall demand, with households making up the rest.
The government has also pointed to a recent moderation in sugar prices. Retail prices have dropped from around Rs 65 per kg in August to Rs 58.50 per kg, representing a decline of roughly 10 per cent. Ex-mill prices, meanwhile, have fallen by close to 25 per cent.
However, the government said the reduction at the retail level has been slower than the decline in ex-mill prices, indicating that the benefit of lower mill-gate prices has not been completely transmitted to consumers.
At a meeting involving sugar manufacturers, cooperative sugar factories and traders, the DFPD secretary called on wholesalers, retailers and other supply-chain participants to ensure that lower ex-mill prices are reflected in consumer prices.
The Centre said it will continue tracking sugar stocks and prices and will take additional steps if necessary to safeguard supplies for households as well as food processing and other industrial users.
The new sugar season is scheduled to commence on October 1. Sugarcane farmers will receive an increased Fair and Remunerative Price (FRP) of Rs 365 per quintal in the new season.
The Centre maintained that its sugar policy is aimed at balancing remunerative returns for sugarcane farmers with the need to keep sugar prices stable and affordable for consumers.
UNI VK RSA
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