India’s central government extended the permissible stockholding period for bulk sugar consumers from 15 to 30 days on Friday, a change announced in New Delhi amid a 10% dip in retail sugar prices.
Retail sugar has slid from roughly ₹65 per kilogram to ₹58.5 per kilogram over the past three weeks, a dip that the Food Ministry says follows a nearly 25% drop in ex‑mill sugar prices. The ministry noted that the savings have not fully trickled down the supply chain, prompting a call for wholesalers and retailers to pass on the lower cost to consumers.
Under the new rule, any stock held beyond the original 15‑day window must be sourced from sugar imported under the tariff‑rate quota (TRQ) or the advance authorisation scheme (AAS). The government has already cleared 10 lakh tonnes of sugar under the TRQ and allows domestic sale of export‑bound sugar procured through the AAS.
Bulk consumers include confectionery makers, biscuit manufacturers, soft‑drink producers, sweet‑meat sellers and halwais, while industrial users consuming more than 10 tonnes of sugar a month qualify for the 30‑day holding period. The Food Ministry has mandated that all bulk buyers declare their inventories every Friday on an online portal.
The Food Ministry said the relaxation aims to smooth supply ahead of the upcoming festive season, ensuring that sugar‑heavy industries can meet the surge in demand without stock shortages. Industry analysts expect the change to stabilize prices further as the holiday rush begins.
The new regulation takes effect immediately, with bulk buyers required to report their holdings weekly and source any excess stock from imported sugar under the stipulated schemes.