Government doubles sugar stock limit for bulk buyers (File Photo) The government has raised the permitted sugar stockholding limit for bulk consumers to 30 days of consumption, but the additional inventory will have to come exclusively from sugar imported under specified duty-free schemes. The move comes ahead of the festive season, when demand from food processors, beverage companies, hotels, restaurants and other institutional buyers typically rises. According to the government, the decision is intended to improve supply availability for industrial users without creating additional pressure on sugar available in the domestic market. Under the revised arrangement, bulk consumers can hold sugar equivalent to 30 days of consumption. However, the quantity sourced from the domestic open market will remain restricted to the earlier 15-day limit. The Department of Food and Public Distribution said the stock beyond the existing 15-day threshold must be sourced from imports covered under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ). The government had earlier allowed duty-free imports of 1 million tonnes of raw sugar on 21 August. This is done to improve domestic availability and contain the rise in sugar prices. Bulk consumers are required to disclose their sugar inventory every Friday through the department's online portal. The stockholding rules apply to consumers purchasing more than 10 tonnes of sugar per month for manufacturing, consumption or other industrial purposes. The higher limit follows discussions between the government and large institutional consumers. These buyers had sought greater flexibility in maintaining inventories before the festive period, as well as permission to directly obtain imported sugar from traders holding supplies under AAS and TRQ. India's annual sugar consumption is estimated at around 28 million-28.5 million tonnes. Sugar production during the 2025-26 sugarcane crushing season was approximately 28 million tonnes. Industrial and institutional users represent a substantial portion of overall demand. Food and beverage manufacturers, hotels, restaurants, caterers and processed-food companies together account for around 60-65 per cent of consumption, while households make up the remaining share through retail purchases. The government said allowing additional inventories only through eligible imported sugar would give industrial consumers greater supply flexibility while limiting the possibility of increased procurement from domestic stocks. The latest stockholding decision comes as sugar prices have begun to moderate after reaching elevated levels. According to government data, retail sugar prices have declined by around 10 per cent, falling from Rs 65 per kg in August to ?58.50 per kg. At the ex-mill level, prices have dropped by nearly 25 per cent. However, the government noted that the decline in retail prices has been slower than the fall recorded at sugar mills, suggesting that the reduction in ex-mill prices has not yet been fully reflected in prices paid by consumers. At a meeting with representatives of the Indian Sugar & Bio-energy Manufacturers Association, the National Federation of Cooperative Sugar Factories and sugar traders, the secretary of the Department of Food and Public Distribution urged wholesalers, retailers and other supply-chain participants to ensure that lower ex-mill prices are passed on to consumers.