Government Increases Sugar Storage Limit for Bulk Consumers to 30 Days, Directs Price Drop Benefits to Reach Consumers

The Ministry of Consumer Affairs, Food and Public Distribution has decided to increase the existing sugar storage limit for bulk consumers from 15 days to 30 days. The government has clarified that additional stock beyond the original 15-day limit can only be obtained through sugar imported under the Advance Authorization Scheme (AAS) and Tariff Rate Quota (TRQ). Meanwhile, the storage limit for purchases made from the open market will remain restricted to 15 days of consumption, as before.

To monitor the market, the government has established a mechanism requiring bulk consumers to submit their weekly sugar stock information and declarations every Friday via the online portal of the Department of Food and Public Distribution. This decision was taken after consultations with major bulk consumers to ensure the seamless availability of sugar for industrial consumption during the upcoming festive season without affecting domestic supply.

Under current regulations, bulk consumers who use more than 10 metric tonnes of sugar per month for production or as raw material are permitted to hold stock exceeding 15 days. These new changes will provide industrial consumers with greater operational flexibility and reduce pressure on domestic reserves.

Regarding sugar pricing, it was reported that retail prices have declined by approximately 10 percent from their peak, dropping from 65 rupees in August to 58.50 rupees. However, a more significant decline of about 25 percent has been observed at the mill level. The government believes that the full benefit of this reduction at the mill level has not reached the end consumers through the supply chain.

During a meeting with the Indian Sugar and Bio-energy Manufacturers Association (ISMA), the National Federation of Cooperative Sugar Factories, and sugar traders, the Secretary of the Department of Food and Public Distribution emphasized that the drop in retail prices should be consistent with the decrease at the mill level. The government has appealed to traders, wholesalers, and retailers to immediately pass on the benefit of this price reduction to consumers.

Additionally, the government has set an increased Fair and Remunerative Price (FRP) of 365 rupees per quintal for sugarcane farmers, effective from the start of the new sugar season on October 1, 2026. The government stated that it will continue to closely monitor the availability and pricing of sugar in the domestic market to meet the requirements of consumers and the food processing industry.