The central government has increased the permissible sugar stock limit for bulk consumers from 15 days to 30 days ahead of the festive season, with the aim of preventing shortages, curbing hoarding and keeping sugar prices under control. The move is expected to ensure adequate availability of sugar for sweet manufacturers, bakeries, food processing companies and other large industrial users during the festival period.
Bulk consumers are companies and industrial units that use more than 10 tonnes of sugar a month as a raw material. Under the earlier arrangement, such consumers could maintain stocks equivalent to only 15 days of their requirements from the domestic market. Under the revised arrangement, consumers can hold stocks for up to 30 days, but any stock above the 15-day domestic requirement must comprise imported sugar. 
The government has directed businesses to ensure that consumers receive the benefit of lower sugar prices. The additional stock requirement being met through imported sugar is intended to prevent excessive purchases from the domestic market and ensure that adequate quantities remain available for other consumers. The measure is particularly important ahead of the festive season, when demand for sugar typically increases because of higher production of sweets, bakery products and processed foods.
To strengthen monitoring and prevent hoarding and black marketing, large sugar-consuming companies will also have to report their stocks every Friday through the Food Ministry's designated portal, foodstock.dfpd.gov.in. The weekly reporting mechanism is aimed at improving visibility of sugar stocks and allowing authorities to monitor availability and price movements more closely.
The government's decision comes at a time when ex-mill sugar prices have declined significantly from their recent peak. While factory-level prices have fallen by around 25%, retail prices have declined by only about 10%. Sugar that was selling at around ₹65 per kg in August is now available at approximately ₹58.50 per kg in retail markets. 
The government has asked traders and retailers to pass on the benefit of falling wholesale prices to consumers without delay. With higher stock availability, increased monitoring and additional imported sugar permitted for longer-duration inventories, the government expects the domestic market to remain adequately supplied during the festive season and help keep retail sugar prices under check.
