Centre imposes sugar stock limits on dealers till Nov 30, cites artificial scarcity concerns

The Centre has imposed stock holding limits on sugar dealers from August 1 to November 30 to curb hoarding, check speculative trading and keep retail prices under control.

The Department of Food and Public Distribution, in a notification, said no sugar dealer will be allowed to hold stock for more than 30 days from the date of receipt.

Dealers will also not be permitted to keep sugar stocks exceeding 4,000 quintals at any time and at any place across the country.

The order exempts sugar held on government account and stocks maintained by dealers nominated by state governments or authorised officers for distribution through fair price shops under the Public Distribution System (PDS).

Under the order, all sugar dealers will have to declare their sugar stocks and update their stock position every week on the Department of Food and Public Distribution's online portal.

The Ministry of Consumer Affairs, Food and Public Distribution said the order is aimed at ensuring adequate availability of sugar in the domestic market, protecting consumer interests and maintaining price stability.

“The government has observed that the recent increase in ex-mill prices of sugar is not supported by the prevailing demand-supply fundamentals,” the ministry said.

According to the ministry, hoarding by some traders, dealers and market intermediaries, along with speculative transactions and paper trade without the physical movement of sugar from mills, has created an artificial perception of scarcity in the market.

It said such practices have led to avoidable price volatility and pushed up both ex-mill and retail sugar prices.

The ministry asserted that sufficient quantities of sugar are available in the country to meet domestic consumption requirements.

“The Department will continue to closely monitor the sugar market and take all necessary measures to ensure the adequate availability of sugar at reasonable prices,” it added.