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. Who will get the direct benefit of this decision? The biggest benefit of this amendment of the government will be given to those large industrial and commercial consumers who consume sugar on a large scale as raw material: 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. 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. Stability in the supply chain: Production lines will not have to stop suddenly due to sugar shortage, thereby ensuring timely supply of finished sweets and snacks to the festive market. There are 2 major mandatory conditions attached with the relief. The government has increased the stock limit, but has also set strict rules along with it so that hoarding and artificial shortage cannot be created in the domestic market: Additional 15 days' stock only from imported sugar: Additional sugar quota for more than 15 days i.e. from 16th to 30th day can be imported only under 'Advanced Authorization Scheme' (AAS) or 'Tariff Rate Quota' (TRQ). This can be accomplished only with sugar. Domestic open market limit will remain only 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. Online Stock Declaration every Friday: All eligible bulk consumers will have to make mandatory reporting of the actual position of their stock every Friday on the official portal of the Food Ministry (foodstock.dfpd.gov.in). Mathematics of sugar prices: Decrease in prices in mills, need of relief in retail market. According to government data, in recent weeks there has been a significant decline of about 20 to 25 percent in the prices of sugar at the mill level (Ex-mill). 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. What will be its impact on the general public and the market? 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. Retail prices will remain stable: Due to meeting the additional demand from imported sugar, the availability of sugar for common domestic consumers at retail shops will remain in abundance, due to which the prices will remain under control. Transparency and Monitoring: With digital stock auditing conducted every week, the government will have accurate data of stocks across the country, which will enable immediate raids on any suspected hoarding.
