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Informist, Friday, Sept. 18, 2026

 

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--Govt allows bulk buyers to hold imported sugar for 30-day use vs 15 days now
--Govt: No change in stock limit for bulk buyers using locally sourced sugar

 

NEW DELHI – The government has allowed bulk consumers of sugar, such as soft-drink manufacturers and food-processing industries, to hold sugar stocks required for 30 days of consumption instead of 15 days in view of the upcoming festival season. However, bulk consumers can hold the additional 15-day inventory only if those stocks were sourced through imports and not purchased from domestic markets, the consumer affairs ministry said in a release.

 

Entities who consume over 10 tonnes of sugar per month as raw material are categorised as bulk consumers. "The government has decided that the existing 15 days' stockholding limit for bulk consumers is relaxed to 30 days, subject to the condition that the quantity of stock held beyond the existing 15 days' limit, shall be sourced exclusively from sugar imported under Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ)," the ministry said. 

 

"The stockholding limit for purchase from the open market shall remain unchanged and will be restricted to 15 days' consumption only," the ministry said. Through this, the government aims to enhance industrial consumers' operational efficiency while ensuring there is no undue pressure on domestic stocks, it added. 

 

Late August, the government had limited bulk consumers to only carry sugar stocks for 15 days' use to prevent panic buying and hoarding amid surging sugar prices.

 

Meanwhile, the stock limits for sugar traders remain capped at 200 tonnes from 400 tonnes earlier. The revised limit is effective from Sept. 15 to Nov. 30.

 

On sugar prices, the government said retail rates have not declined in tandem with ex-mill prices. Ex-mill prices have declined nearly 25% but retail prices have fallen only by 10%, the government said, adding that retailers have not fully passed on the benefits of lower ex-mill prices to consumers.

 

In August, ex-mill sugar prices corrected to INR 4,500-INR 4,600 per 100 kilograms from the record INR 6,000-INR 6,400 in August. Meanwhile, retail sugar prices have fallen only to INR 58.5 per kg from INR 65 levels in August. According to sugar mills, the gap between retail and factory-gate prices must be only INR 7 per kg. 

 

The government has urged the entire sugar value chain to ensure sugar and sugar-based products are affordable during the forthcoming festivals. To ensure affordable prices, the government will continue to monitor weekly disclosure of sugar stocks and prices across major markets.  End

 

Reported by Afra Abubacker

Edited by Rajeev Pai

 

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