The Ministry of Consumer Affairs, Food & Public Distribution has announced a significant relaxation in sugar stockholding limits for bulk consumers. The existing 15-day stockholding limit has been increased to 30 days, with the critical condition that any quantity held beyond the original 15-day limit must be sourced exclusively from sugar imported under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ). The stockholding limit for sugar purchased from the open market remains unchanged at 15 days' consumption only.
Bulk consumers, defined as entities using or consuming more than 10 MT of sugar per month as raw material for production, had requested this enhancement particularly in view of the upcoming festival season. The government has implemented a mandatory declaration mechanism requiring bulk consumers to disclose their sugar stocks weekly every Friday through the Department of Food and Public Distribution's online portal at https://foodstock.dfpd.gov.in/.
The measure aims to balance the interests of bulk consumers with the need to maintain stability in the domestic sugar market, providing greater operational flexibility to genuine industrial consumers while ensuring additional stocks are sourced from imported sugar rather than placing pressure on domestic supplies.
Concurrently, retail sugar prices have declined by approximately 10% from their peak of ₹65 in August to ₹58.50. However, ex-mill prices have declined more significantly by nearly 25%, indicating that the benefit of reduced ex-mill prices has not been fully transmitted through the supply chain to consumers. In a joint meeting with representatives of ISMA, the National Federation of Cooperative Sugar Factories, and sugar trade, the Secretary of the Department of Food and Public Distribution made a strong appeal to the sugar trade, wholesalers, and retailers to immediately pass on the benefit of the significant reduction in ex-mill sugar prices to consumers.
The government emphasized that farmers and consumers are the two central pillars of India's sugar policy. From October 1, 2026, with the commencement of the new sugar season, sugarcane farmers will receive the increased Fair and Remunerative Price (FRP) of ₹365 per quintal. The government will continue to closely monitor sugar availability and prices in the domestic market and take appropriate measures as necessary to ensure adequate availability for consumers and food processing industries.