To curb hoarding during the festive season, the government has tightened stock-holding rules for sugar dealers. Effective Oct 15-Nov 30, dealers are limited to 1,000 quintals and a 15-day holding period to pass on lower mill prices to consumers.
The government has tightened stock-holding rules for sugar dealers ahead of the festive season, limiting inventories to 1,000 quintals and restricting the holding period to 15 days, as it seeks to curb hoarding and ensure that a sharp fall in mill-level sugar prices reaches consumers.
The revised norms will come into effect from October 15 and remain applicable until November 30, the Ministry of Consumer Affairs, Food and Public Distribution said on Thursday. The intervention comes as the new sugar season begins from October 1 and festive demand picks up. It also follows a sharp decline in sugar prices at the mill level, with ex-mill prices falling about 28 per cent and remaining stable over the past three weeks. Retail prices, however, have declined by a relatively lower 15 per cent from their August peak, prompting the government to urge wholesalers and retailers to immediately pass on the benefit of lower ex-mill prices to consumers.
Details of the Revised Rules
Under the revised rules, a sugar dealer will not be allowed to hold sugar for more than 15 days from the date of receiving the stock. Dealers will also not be permitted to hold more than 1,000 quintals of sugar at any time and at any place across most parts of the country.
Exceptions for Key Distribution Hubs
A higher stock limit of 2,000 quintals has been allowed for Kolkata and its extended metropolitan areas as well as Assam, considering their particular supply and transportation requirements. The ministry said Kolkata receives sugar from major producing states such as Uttar Pradesh, Maharashtra and Karnataka and acts as an important distribution point for eastern and northeastern India. Assam has also been given a higher limit due to geographical and logistical constraints.
Aimed at Ensuring Smooth Supply and Curbing Hoarding
The government said the tighter norms are intended to prevent sugar from being unnecessarily accumulated in the distribution chain and ensure supplies continue to move from mills to dealers and ultimately to consumers.
The measures are also aimed at discouraging speculative trading and artificial stock accumulation during a period of higher seasonal demand.
Monitoring Sugarcane Supply
At the same time, the government is keeping watch on sugarcane supplies after uneven and deficient rainfall linked to El Niño conditions affected some sugar-producing regions. Sugar mills have been advised to begin crushing operations in line with agro-climatic conditions in their respective regions, while state governments have also been asked to take appropriate steps based on field conditions.
The Centre said it would continue monitoring domestic sugar availability and prices while balancing consumer interests with remunerative returns for sugarcane farmers. (ANI)
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