Sugar stock limit halved to 1,000 quintals as Centre tightens curbs ahead of festive season
NEW DELHI: The Centre has further tightened stock limits for sugar dealers ahead of the festive season, capping inventories at 1,000 quintals and restricting the holding period to 15 days in a move aimed at curbing hoarding and ensuring that lower sugar prices at the mill level are passed on to consumers.The revised norms will come into effect from October 15 and remain in force until November 30, the ministry of consumer affairs, food and public distribution said on Thursday.The move comes as the new sugar season begins on October 1 and festive demand picks up. The government said ex-mill sugar prices have fallen by around 28 per cent and remained stable over the past three weeks, while average retail prices have declined by about 15 per cent from their August peak.The Centre has asked wholesalers and retailers to immediately pass on the benefit of lower ex-mill prices to consumers.“By restricting the quantity and storage period of sugar, the government aims to facilitate the orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices,” the ministry said.Under the amended rules, dealers cannot hold more than 1,000 quintals of sugar at any time or retain stocks for more than 15 days from the date of receipt. The limits will not apply to Kolkata and its extended metropolitan areas or Assam, where the stock ceiling has been set at 2,000 quintals.The higher limit for Kolkata takes into account its role as a major distribution hub for eastern and northeastern India. The city sources sugar from producing states including Uttar Pradesh, Maharashtra and Karnataka. Assam has been given a higher limit because of geographical and transportation constraints, the ministry said.“The objective of the amended rules is to ensure that there is no unnecessary accumulation of sugar in the distribution chain and that there is a smooth flow of supply from sugar mills through dealers to the end consumer,” it said.The Centre had first imposed a nationwide dealer stock limit of 4,000 quintals in August, along with a maximum holding period of 30 days. The limit was subsequently reduced to 2,000 quintals from September 15. The latest move further halves the permitted stock and cuts the holding period to 15 days.The government said the tighter restrictions are also intended to discourage speculative trading and artificial accumulation of stocks during the period of higher seasonal demand.Meanwhile, the Centre is monitoring sugarcane availability amid concerns over the impact of erratic and deficient rainfall linked to El Niño conditions in some producing regions. Sugar mills have been advised to begin crushing operations in line with agro-climatic conditions in their respective areas, while state governments have been asked to take appropriate steps based on local conditions.The government said it would continue monitoring domestic sugar availability and prices and take timely measures to balance consumer interests with remunerative returns for sugarcane farmers.
