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Govt relaxes stockholding limit for bulk sugar consumers to 30 days ahead of festival season
Sep-19-2026

The government has relaxed the stockholding limit for bulk sugar consumers to 30 days from the existing 15 days, as the festive season approaches and demand is expected to pick up. Currently, bulk consumers who use more than 10 tonnes of sugar a month as a raw material - for production, consumption or other industrial use - are allowed to hold stock for up to 15 days of their requirement. The Department of Food and Public Distribution said this limit will now be doubled, but with a caveat: any stock held beyond the earlier 15-day cap must come exclusively from sugar imported under the Tariff Rate Quota (TRQ) or the Advance Authorisation Scheme (AAS).

The government has already permitted import of 10 lakh tonnes under TRQ, besides allowing domestic sale of export-bound sugar procured under the AAS. Stock sourced from the open market will continue to be capped at 15 days' consumption. To keep track of inventories, the government has also introduced a mechanism requiring bulk consumers to declare and disclose their sugar stocks every Friday through the food ministry's online portal.

The ministry said the decision followed detailed consultations with major bulk consumers, who had sought an enhanced stockholding limit ahead of the festive season. They had also proposed being allowed to source sugar directly from importers holding TRQ and AAS stock, to ensure uninterrupted supply for industrial use without straining domestic availability. The government said the step was meant to balance the interests of bulk consumers with the need for stability in the domestic sugar market, offering industrial users more flexibility during the festive months while ensuring additional stock comes from imports rather than adding pressure on local supplies.
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