Conditional Extension of Sugar Stock Limit for Bulk Buyers

New Delhi: The Central Government has extended the sugar storage limit period for bulk buyers from 15 days to 30 days, subject to certain conditions. The 15-day limit remains applicable to sugar produced from domestic sugarcane.

If bulk buyers wish to hold sugar stocks beyond this period, they must purchase sugar produced from the processing or refining of imported raw sugar; such stock may be held for up to one month from the date of purchase. Similarly, bulk buyers may hold stocks for up to one month by purchasing sugar imported under the Advance Authorization Scheme (AAS).

It is noteworthy that sugar is already being imported under the AAS. Meanwhile, the government had last month permitted the duty-free import of 10 lakh tonnes of raw sugar under the Tariff Rate Quota (TRQ) system, and the process for these imports has already commenced.

In the meantime, the government has stated that the all-India average retail price of sugar has declined by 10 percent—dropping from a peak of ₹65 per kg in August to ₹58.50 per kg—and efforts are underway to bring it down further. Ex-factory sugar prices have already witnessed a decline of approximately 25 percent.