Centre cuts sugar dealers’ stock ceiling to 1,000 quintals for festive period
The Food Ministry has reduced the stock limit for sugar dealers to 1,000 quintals from October 15 to November 30, while setting a 2,000-quintal limit for Kolkata’s extended metropolitan areas and Assam. Dealers may hold stocks for only 15 days as the government seeks to prevent accumulation and support supplies.
The Centre has tightened the stock-holding limit for sugar dealers ahead of the festive season, reducing the ceiling to 1,000 quintals from October 15 to November 30. Dealers will also be permitted to hold sugar for no more than 15 days. The Food Ministry said the revised limits were intended to ensure adequate supplies at reasonable prices and prevent unnecessary accumulation in the distribution chain.
It said the measure would support the orderly movement of sugar from mills through dealers to consumers. The 1,000-quintal limit will not apply to Kolkata and its extended metropolitan areas or to Assam. The ceiling in those areas will be 2,000 quintals.
According to the Ministry, the special provision reflects Kolkata’s role in receiving sugar from Uttar Pradesh, Maharashtra and Karnataka before supplying eastern India, including the northeast. The Assam limit takes account of geographical constraints, transport facilities and consumer interests in the region. The new sugar season began on October 1.
The Ministry said average retail prices had fallen 15% from their August peak and were expected to decline further as lower prices moved through the supply chain. Ex-mill prices had fallen by about 28% and remained stable for the previous three weeks, it said. The government has progressively reduced dealer stock limits this year.
In August, it imposed a nationwide ceiling of 4,000 quintals, with a maximum holding period of 30 days. The limit was reduced to 2,000 quintals from September 15. The Ministry asked mills, dealers, wholesalers and other market participants to maintain uninterrupted movement and avoid hoarding and speculation.
Wholesalers and retailers were urged to pass on the fall in ex-mill prices to consumers immediately. The Centre will continue to monitor the effect of erratic and inadequate rainfall linked to El Niño conditions on sugarcane in some producing areas. It said it would take timely measures to balance domestic availability, consumer interests and the interests of cane farmers.
Mills and State governments were also advised to begin or facilitate crushing operations according to local agro-climatic conditions.
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