Government halves sugar stock limit for dealers to curb hoarding

Govt Tuesday halved sugar stock holding limit for dealers to 2,000 quintals

NEW DELHI: Govt Tuesday halved sugar stock holding limit for dealers to 2,000 quintals from Sept 15 till Nov 30, in its bid to ensure adequate availability in the domestic market and prevent hoarding and speculative trading. The move comes as retail prices have moderated to around Rs 63 a kg, but still remain elevated even as ex-mill prices have crashed by more than 20% after govt took a series of steps.At present, stock holding limit for sugar dealers across the country is 4,000 quintals. As per the new order, no sugar dealer can hold any stock for a period exceeding 30 days from the date of receipt of sugar consignments and no dealer can keep over 2,000 quintals of sugar at any time.

Govt expects the reduction will facilitate orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices. Meanwhile, govt has undertaken intensive monitoring and physical verification of sugar stocks, covering sugar mills, dealers and traders.