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Government Tightens Sugar Stock Rules Ahead of Festive Demand
The government has made stricter rules for sugar dealers.
Dealers can keep only 1,000 quintals at one location and must move the sugar within 15 days.
These rules will apply from 15 October to 30 November.
The goal is to stop hoarding and keep sugar available during festivals.
Kolkata and Assam can keep up to 2,000 quintals because sugar takes longer to transport to eastern and northeastern areas.
Sugar prices are still higher than last year, but they have fallen from their August high.
The government has also allowed duty-free imports of 1 million tonnes of raw sugar.
Officials have asked mills and traders to keep sugar moving so consumers can buy enough at reasonable prices.
Dealers may hold no more than 1,000 quintals of sugar at any location for up to 15 days from receipt.
The revised rules apply from 15 October through 30 November during the festive-demand period.
Kolkata’s extended metropolitan areas and Assam will retain a higher 2,000-quintal limit because of regional supply logistics.
Retail sugar prices were ₹55.62 per kg on 1 October, about 20% above a year earlier but below their August peak.
The government permitted duty-free imports of 1 million tonnes of raw sugar and urged mills to maintain continuous supplies.
- Who
- The Ministry of Consumer Affairs, Food and Public Distribution, sugar dealers, mills, wholesalers and other market participants.
- What
- The government tightened limits on the quantity and duration of sugar stocks held by dealers.
- Where
- The rules apply across India, with higher limits for Kolkata’s extended metropolitan areas and Assam.
- When
- The revised rules apply from 15 October to 30 November; the new sugar season began on 1 October.
- Why
- To curb hoarding and speculative trading, prevent stock accumulation and support sugar availability during the festive season.
Key facts
- Dealer stock limit
- 1,000 quintals at any one location
- Holding period
- No more than 15 days from the date of receipt
- Regional exception
- 2,000 quintals in Kolkata’s extended metropolitan areas and Assam
- Rule period
- 15 October through 30 November
- Retail price
- ₹55.62 per kg on 1 October, about 20% above a year earlier
- Price trend
- Average retail prices were reported to be 15% below their August peak; ex-mill prices declined by about 28%
- Raw sugar imports
- Duty-free imports of 1 million tonnes were allowed on 21 August
Quotes
Ministry of Consumer Affairs, Food and Public Distribution
The government ministry that announced the revised sugar stockholding rules.
“Kolkata sources sugar from Uttar Pradesh, Maharashtra and Karnataka and supplies it to the eastern part of the country, including the North-Eastern region.”
livemint.com
Binod Anand
A member of the high-power committee on minimum support price and agricultural reforms.
“The latest intervention comes as the government seeks to balance two competing objectives in sugar policy — ensuring remunerative returns for sugarcane farmers while keeping retail sugar prices affordable for consumers”
livemint.com
Sources
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