Govt imposes sugar stock limits till November to rein in prices
New Delhi: The Centre has imposed stockholding limits on sugar dealers across the country from 1 August to 30 November to curb hoarding, discourage speculative
New Delhi: The Centre has imposed stockholding limits on sugar dealers across the country from 1 August to 30 November to curb hoarding, discourage speculative trading, and ensure adequate sugar supplies at reasonable prices during the festival season. The move follows an increase in e mill sugar prices that is "not supported by the prevailing demand-supply fundamental", the food ministry said in a statement. Also Read | Sugar exports fall below 5% as Centre prioritizes domestic market "It has also come to notice that hoarding by certain traders, dealers and market intermediaries, along with speculative transactions and paper trade without the actual physical movement of sugar from mills, has contributed to creating an artificial perception of scarcity in the market," the release said.
Such practices have resulted in avoidable price volatility and an increase in both e mill and retail sugar prices. For orderly supplies The government said the restrictions are intended to ensure orderly domestic supplies, protect consumer interests and allow genuine trade and distribution activities to continue without disruption. It also assured consumers that the country has adequate sugar stocks to meet domestic demand and said it will continue to closely monitor the market and take further measures, if required, to ensure sugar remains available at reasonable prices. Under the order, all sugar dealers were asked to declare their sugar stocks and update them every week on the Department of Food and Public Distribution's online portal.
Earlier, on 17 July, the Indian Sugar & Bio-energy Manufacturers Association (ISMA) & the Federation of Cooperative Sugar Factories Ltd. (NFCSF) reassured all stakeholders that India's sugar availability remains comfortable and the country has adequate sugar stocks to comfortably meet domestic consumption requirements. Focus welcomed According to the industry, domestic consumption of sugar is between 28.1-28.5 million tonnes. Currently, institutional consumption such as food and beverage companies, hotels, restaurants and catering (HoReCa) sector and processed foods accounts for 60–65% of total demand, with the remaining share coming from retail households. “We welcome the Government's continued focus on ensuring a stable and well-regulated sugar supply chain across the country,” said Deepak Bellani, director general of industry body Indian Sugar Mills Association.
Also Read | Rival complaint—FSSAI notice to The Whole Truth on sugar claims "The industry has always supported measures that promote transparency and fair distribution, and the requirement for dealers to declare stock positions on the Department's online portal is a welcome step towards greater accountability and real-time visibility into market supplies," said Bellani.
The BriefWire