Keeping in mind the huge demand for sweets, packaged food, beverages and confectionery products in the upcoming festive season, the Central Government has taken a major policy decision in the interest of the sugar industry and large consumers. The Department of Food and Public Distribution has doubled the statutory limit of keeping sugar stock for bulk and industrial sugar consumers from 15 days to 30 days.
The Union Ministry has issued this notification to strike a balance so that there is no shortage of sugar in the domestic market during the festive season starting from October, the supply chain remains uninterrupted and there is no uncontrolled increase in prices in case of sudden surge in demand.
The biggest benefit of this amendment of the government will be given to those big industrial and commercial consumers who consume sugar on a large scale as raw material:
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Bulk Consumers with consumption more than 10 MT: All those business units and factories which use more than 10 metric tons (MT) of sugar per month in production or processing come under this scope.
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Sweets, Bakery and Beverage Manufacturers: FMCG companies making Rasgullas, Gulab Jamun, chocolates, biscuits, cakes and soft drinks during festivals will now be freed from the hassle of ordering goods again and again and will be able to keep the raw material required for 1 month with them.
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Sustainability in Supply Chain: Production lines will not have to stop suddenly due to sugar shortage, which will ensure timely supply of ready-made sweets and snacks to the festive market.
The government has increased the stock limit but has also set strict rules to avoid hoarding and artificial shortage in the domestic market:
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Additional 15 days stock only from imported sugar: The additional sugar quota beyond 15 days i.e. from 16th to 30th day can be met only by sugar imported under 'Advanced Authorization Scheme' (AAS) or 'Tariff Rate Quota' (TRQ).
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Domestic open market limit will remain only for 15 days: The stock of sugar purchased from India's domestic open market will still be kept equal to the maximum consumption of 15 days. Its objective is to ensure that sugar produced from domestic mills remains directly accessible to common consumers and retail markets.
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Online Stock Declaration every Friday: All eligible bulk consumers will have to do mandatory reporting of the actual position of their stock every Friday on the official portal of the Food Ministry (foodstock.dfpd.gov.in).
According to government data, there has been a significant decline of about 20 to 25 percent in ex-mill sugar prices in recent weeks. However, this decline has been seen only around 5 to 10 percent in the retail markets, where prices have come down from their highest level of ₹65 per kg to around ₹58.50 per kg.
In a joint meeting held with sugar mills, wholesalers and retailers, the Food Ministry has given blunt instructions that the entire financial benefit of the decline at the mill level should be immediately passed on to the common consumers. Along with this, the government also reiterated that under the new sugar season starting from October 1, 2026, the fair and remunerative price (FRP) for sugarcane farmers has been fixed at ₹ 365 per quintal, so that there is no hindrance in the payments to the farmers.
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Ban on black marketing during festivals: By securing additional stock in time by big buyers, sudden buying and selling of sugar and artificial scarcity at the time of festivals will be completely controlled.
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Retail prices will remain stable: Due to meeting the additional demand from imported sugar, the availability of sugar will remain in abundant quantity for the common domestic consumers at the retail shops, which will keep the prices under control.
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Transparency and Monitoring: With weekly digital stock auditing, the government will have accurate data of stocks across the country, so that any suspected hoarding can be immediately raided.