SF Prep Notes

Government relaxes sugar stockholding limit for bulk consumers from 15 to 30 days, extra stock only from imported sugar

On 18 September 2026, the Food Ministry relaxed the sugar stockholding limit for bulk consumers from 15 days to 30 days of consumption, provided stock beyond 15 days comes only from sugar imported under the Advance Authorisation Scheme (AAS) and Tariff Rate Quota (TRQ).

Summary

The sugar stockholding relaxation applies to bulk consumers who use more than 10 tonnes of sugar a month as raw material. The limit for sugar bought on the open market stays at 15 days, and bulk consumers must declare their stocks every Friday on the Food Department's portal. The ministry said retail sugar prices have fallen about 10% from their peak, from ₹65 in August to ₹58.50, while ex-mill prices have fallen nearly 25%, and urged traders to pass on the benefit to consumers.

Key facts

New limit
30 days' consumption (was 15 days) for bulk consumers
Condition
Stock beyond 15 days only from sugar imported under AAS and TRQ
Bulk consumer
Uses more than 10 tonnes of sugar per month
Open-market purchase
Limit unchanged at 15 days; weekly stock disclosure every Friday
Prices
Retail down ~10% (₹65 → ₹58.50); ex-mill down ~25%

Practice MCQs 3 questions

Q1

In September 2026, the sugar stockholding limit for bulk consumers was relaxed to how many days of consumption?

Show answer

Correct answer: A — 30 days

The limit was relaxed from 15 days to 30 days, with stock beyond 15 days to come only from imported sugar under AAS and TRQ.

Q2 Advanced

Under the September 2026 relaxation, sugar stock held by bulk consumers beyond 15 days must be sourced from where?

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Correct answer: C — Sugar imported under the Advance Authorisation Scheme and Tariff Rate Quota

The additional stock must come exclusively from sugar imported under AAS and TRQ; the open-market limit stays at 15 days.

Q3 Advanced

Consider the following about the sugar decision of 18 September 2026: 1. The stockholding limit for sugar bought on the open market was raised to 30 days. 2. Retail sugar prices have fallen by about 25% from their peak. Which of the above is/are correct?

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Correct answer: D — Neither 1 nor 2

Neither is correct. The open-market limit stays at 15 days, and retail prices fell about 10%; it is ex-mill prices that fell nearly 25%.

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