Festive Season Relief for Bulk Sugar Users as Government Extends Stockholding Limit to 30 Days

New Delhi: The government has doubled the sugar stockholding limit for bulk consumers from 15 days to 30 days ahead of the festive season, when demand from food and beverage manufacturers is expected to increase.

The revised rule applies to industrial users consuming more than 10 tonnes of sugar every month for production, processing or other commercial purposes.

However, sugar held beyond the earlier 15-day limit must be sourced only through imports under the Tariff Rate Quota or Advance Authorisation Scheme.

Sugar purchased from the domestic open market will remain subject to the existing 15-day consumption limit, the Department of Food and Public Distribution clarified.

Imported sugar to meet additional demand

The government has already permitted imports of 10 lakh tonnes of sugar under the TRQ mechanism. It has also allowed the domestic sale of export-bound sugar procured through the Advance Authorisation Scheme.

The relaxation followed consultations with major bulk consumers seeking additional flexibility during the festival season.

Industrial users had requested permission to purchase sugar directly from importers holding TRQ and AAS stocks to maintain uninterrupted production without putting pressure on domestic supplies.

Bulk consumers must disclose their sugar inventories every Friday through the food ministry’s online stock-monitoring portal.

Retail prices remain elevated

The Centre said ex-mill sugar prices have fallen nearly 25% from their August peak, while retail prices have declined only around 10%, from ₹65 to ₹58.50 per kg.

Officials said the reduction in wholesale prices had not been fully passed on to consumers. Wholesalers, retailers and other participants in the sugar supply chain were asked to provide the benefit of lower prices to buyers.

The government said it would continue monitoring sugar availability and prices during the festive period.

From October 1, 2026, sugarcane farmers will receive a higher Fair and Remunerative Price of ₹365 per quintal as the new sugar season begins.

The ministry said its policy would continue balancing fair returns for farmers with affordable sugar prices for consumers and sufficient supplies for food-processing industries.