Festive relief: Government announces major decision on sugar prices

New Delhi (The Uttam Hindu) : To ensure adequate sugar availability during the festive season and maintain price control, the central government has decided to reduce the sugar stock limit held by dealers. Under the new rule, a dealer will be able to hold a maximum of 1,000 quintals of sugar in most parts of the country from October 15 to November 30. Additionally, dealers will not be allowed to hold stocks for more than 15 days.

Exemption to Kolkata and Assam

The government has set separate limits for Kolkata and the surrounding region, as well as for Assam. In these areas, a dealer can stock a maximum of 2,000 quintals of sugar. According to the government, the higher stock limits are due to local needs and the logistical challenges involved in supplying sugar to these regions.

Steps to prevent hoarding

During the festive season, sugar demand increases compared to normal times. Therefore, excessive sugar storage can create artificial shortages and increase prices. The government says that limiting the quantity and duration of stockpiles will help ensure a regular supply from sugar mills to wholesalers and retailers.

The limit was 4,000 quintals in August

The government has steadily tightened sugar stockpiles over the past few months. In August, a maximum stock limit of 4,000 quintals was set for dealers, allowing them to hold the stock for 30 days after receiving it. Effective September 15th, the limit was reduced to 2,000 quintals. Now, effective October 15th, it is being reduced to 1,000 quintals in most areas.

Prices have dropped compared to August

According to the government, sugar prices peaked in August. Since then, the average retail price has declined by approximately 15 percent. Meanwhile, the price received from sugar mills has declined by approximately 28 percent. The government emphasizes that the benefits of this price reduction should be passed on to consumers through the retail market.

Instructions to mills and traders to maintain supply

The government has urged sugar mills, dealers, wholesalers, and other traders to refrain from accumulating unnecessary stocks and to maintain regular supplies in the market. The government is also monitoring the potential impact of weather conditions on the sugarcane crop. Further steps may be taken, if necessary, to control sugar availability and prices.

New stock limit

October 15 to November 30: New rules come into effect

Most areas: Maximum 1,000 quintals

Kolkata region and Assam: Maximum 2,000 quintals

Stock period: 15 days maximum

Limit in first August: 4,000 quintals

Limit from September 15: 2,000 quintals