Sugar stock limit doubled to 30 days: Big government move ahead of festival season

The stockholding limit for sugar purchased from the open market will remain unchanged at 15 days of consumption.

The government has also introduced a mechanism requiring bulk consumers to declare and disclose their sugar stocks every Friday through the Department of Food and Public Distribution’s online portal.

“The government has also put in place a mechanism for the declaration and weekly disclosure of sugar stocks every Friday by bulk consumers through the Department of Food and Public Distribution’s online portal,” the government said in a statement.

The government held detailed consultations with major bulk consumers of sugar, and their suggestions were considered with the aim of maintaining a stable and orderly sugar market.

At present, bulk consumers using or consuming more than 10 metric tonnes of sugar per month as a raw material for production, consumption or other uses are permitted to hold sugar stocks equivalent to no more than 15 days of consumption.

Bulk consumers had requested that the existing limit be increased, particularly ahead of the upcoming festival season.

They also sought permission to directly source sugar from importers holding stocks imported under the Advance Authorisation Scheme and Tariff Rate Quota. The move, they said, would help ensure uninterrupted availability of sugar for industrial consumption without adversely affecting domestic supplies.

The government said the measure is aimed at balancing the interests of bulk consumers with the need to maintain stability in the domestic sugar market.

It will provide greater operational flexibility to genuine industrial consumers during the upcoming festival season while ensuring that additional stocks are sourced from imported sugar rather than putting undue pressure on domestic supplies.

Retail Sugar Prices Decline 10%

Retail sugar prices have declined by around 10% from their peak, falling from ₹65 per kg in August to ₹58.50 per kg.

However, ex-mill sugar prices have already declined by nearly 25%.

The government observed that the slower decline in retail prices indicates that the benefit of lower ex-mill prices has not yet been fully passed through the supply chain to consumers.

At a joint meeting held on Thursday with representatives of the Indian Sugar & Bio-energy Manufacturers Association (ISMA), the National Federation of Cooperative Sugar Factories and the sugar trade, the Secretary of the Department of Food and Public Distribution emphasised that the reduction in ex-mill prices has not yet been fully reflected in retail prices.

The government made a strong appeal to sugar traders, wholesalers, retailers and other market participants to immediately pass on the benefit of the significant reduction in ex-mill prices to consumers.

It emphasised that retail prices should keep pace with the correction already achieved at the mill level.

The government also called upon the entire sugar value chain to collectively ensure that sugar and sugar-based products remain affordable and accessible to consumers during the forthcoming festival season.

The Secretary emphasised that farmers and consumers are the two central pillars of India’s sugar policy. The government has consistently sought to balance the interests of sugarcane farmers with the need to maintain stable and reasonable sugar prices for consumers.

From October 1, 2026, with the commencement of the new sugar season, sugarcane farmers will receive an increased Fair and Remunerative Price (FRP) of ₹365 per quintal.

The government has been increasing the FRP annually to ensure remunerative returns for sugarcane farmers while maintaining balance in the sugar sector.

The government said it will continue to closely monitor sugar availability and prices in the domestic market and take appropriate measures, as necessary, to ensure adequate supplies for consumers as well as the food processing and other industries