Government Relaxes Sugar Stockholding Limit for Bulk Consumers from 15 to 30 Days, Additional stock to be sourced exclusively from imported sugar under Advance Authorization Scheme (AAS) and Tariff Rate Quota (TRQ)
The Government has relaxed the stockholding limit for bulk consumers from 15 to 30 days, provided the additional stock beyond 15 days is sourced exclusively from imported sugar under the Advance Authorisation Scheme and Tariff Rate Quota. Retail sugar prices have declined by about 10% from their peak, while ex-mill prices have dropped by nearly 25%. Additionally, sugarcane farmers will receive an increased Fair and Remunerative Price of ₹365 per quintal starting October 1, 2026.
Why It Matters
This update on sugar stock limits, retail price trends, and the Fair and Remunerative Price for sugarcane is relevant for government policy and economy sections in competitive exams.
In Simple Words
The Indian government has increased the stockholding limit for bulk consumers of sugar from 15 days to 30 days. However, any stock held beyond the original 15-day limit must come entirely from imported sugar through specific schemes like the Advance Authorisation Scheme and Tariff Rate Quota, keeping open market purchases limited to 15 days.
At the same time, the government has urged traders and retailers to pass on the benefits of a nearly 25% drop in ex-mill prices to ordinary consumers, noting that retail prices have only fallen by 10%. It also highlighted that sugarcane farmers will get a higher FRP of ₹365 per quintal starting October 1, 2026.
Key Points
- Stockholding limit for bulk consumers relaxed from 15 to 30 days.
- Additional stock beyond 15 days must be sourced from imported sugar under AAS and TRQ.
- Bulk consumers must declare and disclose sugar stocks weekly on Fridays via the DFPD portal.
- Bulk consumers are defined as those consuming more than 10 MT of sugar per month.
- Retail sugar prices declined by around 10% from their peak of Rs. 65 in August to Rs. 58.50.
- Ex-mill sugar prices have declined by nearly 25%.
- Sugarcane farmers will receive an increased FRP of ₹365 per quintal from October 1, 2026.
- Farmer and consumer are stated as the two central pillars of India's sugar policy.
Exam Angle
A. ₹365 per quintal
Source: Press Information Bureau