Sugar Stockholding Limit Doubled to 30 Days for Bulk Consumers Ahead of Festive Season
The government has increased the permitted sugar stockholding limit for bulk consumers to 30 days of consumption ahead of the festive season. However, the additional inventory beyond the existing 15-day limit must be sourced exclusively from sugar imported under specified duty-free schemes, including the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ).
New Delhi, September 19: The government has increased the permitted sugar stockholding limit for bulk consumers to 30 days of consumption ahead of the festive season. However, the additional inventory beyond the existing 15-day limit must be sourced exclusively from sugar imported under specified duty-free schemes, including the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ).
The move is aimed at improving sugar availability for food processors, beverage companies, hotels, restaurants, caterers and other institutional buyers as demand typically rises during the festive period. The government said the arrangement will provide greater inventory flexibility to industrial users without putting additional pressure on domestic sugar supplies.
Sugar Stockholding Limit For Bulk Consumers
Under the revised arrangement, bulk consumers can maintain sugar stocks equivalent to 30 days of their consumption. However, sugar procured from the domestic open market will continue to be subject to the earlier 15-day stockholding limit. Sugar Prices Set to Fall Further as Ex-Mill Rates Drop 20%, Government Says
The Department of Food and Public Distribution said any quantity held beyond the 15-day domestic procurement limit must come from eligible imports under the AAS and TRQ schemes.
The government had earlier permitted duty-free imports of 1 million tonnes of raw sugar on August 21, aimed at improving domestic availability and containing sugar price pressures.
Bulk consumers purchasing more than 10 tonnes of sugar per month for manufacturing, consumption or other industrial purposes are required to declare their inventories every Friday through the department's online portal. Sugar Price Hike: Govt Allows Duty-Free Import of 10 Lakh Tonnes, Imposes Stock Limits.
Industrial Users Account For Major Share Of Sugar Demand
India's annual sugar consumption is estimated at around 28 million to 28.5 million tonnes, while sugar production during the 2025-26 sugarcane crushing season was approximately 28 million tonnes.
Food and beverage manufacturers, hotels, restaurants, caterers and processed-food companies account for a substantial share of sugar demand. Industry and institutional users together are estimated to account for around 60-65% of consumption, with households making up the remaining demand through retail purchases.
The government said allowing additional stocks only through eligible imported sugar would give industrial consumers greater supply flexibility while limiting additional procurement from domestic stocks.
Sugar Prices Moderate After Recent Rise
The stockholding decision comes as sugar prices have started to ease after reaching elevated levels. Government data showed that retail sugar prices have declined by around 10%, from INR 65 per kg in August to around INR 58.50 per kg. At the ex-mill level, prices have fallen by nearly 25%.
The government noted that retail prices have declined more slowly than ex-mill prices, indicating that the reduction in prices at sugar mills has not yet been fully passed on to consumers.
At a meeting with representatives of the Indian Sugar & Bio-energy Manufacturers Association, the National Federation of Cooperative Sugar Factories and sugar traders, the Secretary of the Department of Food and Public Distribution urged wholesalers, retailers and other supply-chain participants to ensure that lower ex-mill prices are reflected in consumer prices.
Government To Monitor Sugar Supply
The government said it will continue monitoring sugar availability and price movements and take further measures if required to maintain adequate supplies for consumers, food-processing companies and other industries.
The decision comes ahead of the new sugar season, which is scheduled to begin on October 1. Sugarcane farmers will receive a higher fair and remunerative price of INR 365 per quintal in the upcoming season.
The government's sugar policy seeks to balance the interests of sugarcane farmers with the need to maintain stable and reasonable sugar prices for consumers.
(The above story first appeared on LatestLY on Sep 19, 2026 09:04 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).