1 hr ago
India Doubles Bulk Sugar Stock Limit, Restricts Extra Supplies
The government will let large sugar users keep up to 30 days of sugar instead of 15 days.
These users include food companies, hotels, restaurants and other businesses that use more than 10 tonnes each month.
The extra sugar must come from imports, not domestic sugar mills.
Sugar bought in the domestic market can still cover only 15 days of use.
The rule is meant to help businesses prepare for higher demand during the festive season.
It is also intended to prevent businesses from taking too much sugar from India’s domestic supply.
Companies must report their sugar stocks every Friday.
The government says sugar prices have fallen at mills but retail prices have not fallen as much.
The government raised the stockholding limit for bulk sugar consumers from 15 to 30 days.
Sugar held beyond 15 days must come from imports under the Advance Authorisation Scheme or Tariff Rate Quota.
Sugar bought from the domestic open market remains limited to 15 days of consumption.
Bulk consumers must report their sugar stocks every Friday through the government’s online portal.
The government said retail prices fell about 10%, while ex-mill prices declined nearly 25% from August peaks.
- Who
- The Indian government, the Department of Food and Public Distribution, and bulk sugar-consuming businesses.
- What
- The government doubled the stockholding limit for bulk consumers to 30 days, while requiring stocks above 15 days to be imported sugar.
- Where
- India.
- When
- The decision was announced on Friday, September 18, 2026, ahead of the festive season.
- Why
- To give industrial users more flexibility and ensure supplies during the festive season without placing additional pressure on domestic sugar stocks.
Industrial Users
Government and Domestic Market
Higher stockholding flexibility
Industrial Users
Bulk consumers sought permission to hold more sugar and directly buy imported supplies to avoid interruptions during the festive season.
Government and Domestic Market
The government allowed the higher limit but restricted the additional stock to eligible imports so domestic availability would not be strained.
Sugar prices and pass-through
Industrial Users
Industrial users and other buyers require reliable supplies and may face continued elevated retail prices despite lower mill prices.
Government and Domestic Market
The government said retail prices have not fallen as much as ex-mill prices and urged wholesalers, retailers and traders to pass on the reductions to consumers.
Key facts
- New stockholding limit
- Up to 30 days of consumption for bulk users.
- Domestic-market limit
- Sugar purchased from the open market remains capped at 15 days of consumption.
- Eligible imported sugar
- Sugar imported under the Advance Authorisation Scheme or Tariff Rate Quota.
- Bulk-consumer threshold
- Businesses using more than 10 tonnes of sugar per month.
- Permitted imports
- The government allowed duty-free imports of 1 million tonnes of raw sugar.
- Price movement
- Retail prices fell from ₹65 to ₹58.50 per kg, while ex-mill prices declined by nearly 25% from August peaks.
- Stock reporting
- Bulk consumers must declare inventories every Friday through the Department of Food and Public Distribution’s online portal.
- Sugarcane price
- The Fair and Remunerative Price is set at ₹365 per quintal from the new sugar season.
Quotes
Food Ministry
Indian government ministry responsible for food policy and the sugar-stock decision
“The measure is intended to strike a balance between the interests of bulk consumers and the need to maintain stability in the domestic sugar market.”
thehindubusinessline.com
Sources
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