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Government Relaxes Sugar Stockholding Limit for Bulk Consumers from 15 to 30 Days, Additional stock to be sourced exclusively from imported sugar under Advance Authorization Scheme (AAS) and Tariff Rate Quota (TRQ)

The Ministry of Consumer Affairs, Food and Public Distribution has increased the period for which bulk industrial sugar consumers can maintain stock. The relaxation applies to companies that use more than 10 tonnes of sugar monthly as raw material. Any stock held beyond the original permission period must come from imported sugar.

What has changed

Bulk consumers can now hold sugar stock for up to 30 days of their consumption, double the previous limit of 15 days. However, this is conditional. The additional stock beyond 15 days must be sourced exclusively through imported sugar obtained under the Advance Authorization Scheme and Tariff Rate Quota. Sugar purchased from India’s open market remains limited to 15 days of consumption.

Bulk consumers must declare and report their sugar stocks weekly every Friday through an online portal maintained by the Department of Food and Public Distribution at foodstock.dfpd.gov.in.

The government has also noted that retail sugar prices have fallen by around 10 percent, declining from Rs. 65 per kilogram in August to Rs. 58.50. However, ex-mill prices at factories have dropped by nearly 25 percent. The government has called on sugar traders, wholesalers and retailers to fully pass on these factory-level price reductions to shoppers and consumers.

From 1 October 2026, when the new sugar season begins, sugarcane farmers will receive an increased Fair and Remunerative Price of Rs. 365 per quintal.

What this means for you

If you work in food processing, pharmaceuticals, beverages or other industries that consume bulk quantities of sugar, you now have greater flexibility to manage your inventory during the festival season. You can hold more stock, though you will need to import part of it rather than relying entirely on domestic supplies. Retail consumers should see further price drops as traders pass on the benefits of lower factory prices, making sugar more affordable in the months ahead.

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