India increases sugar stock limits for large consumers

The Indian government has increased the sugar stock limit for large consumers, such as food processors, beverage companies, hotels, and restaurants, from 15 days to 30 days. This decision aims to ensure adequate availability and price stability ahead of the upcoming festive season.

Under the new regulations, industrial and bulk consumers using more than 10 metric tons of sugar per month may hold stock equivalent to 30 days of consumption. However, any stock held beyond the initial 15-day domestic limit must consist of imported sugar under the Tariff Rate Quota (TRQ) or Advance Authorization Scheme (AAS). This measure is intended to provide logistical flexibility to industrial buyers without placing additional pressure on domestic supplies.

The move comes amid concerns regarding a potential decline in sugar production for the upcoming crushing season, which begins in October. Factors such as El Niño and the possibility of dry weather may impact crop yields. Consequently, the government has revised its production estimate for the 2025-26 marketing year downward from 343 lakh tonnes to 306 lakh tonnes, against an estimated annual demand of 280-285 lakh tonnes.

To maintain transparency and prevent hoarding, large consumers are now required to report their sugar stock details every Friday on the official Department of Food and Public Distribution online portal.