Indian sugar mills association

Union Cabinet approves stock limit on sugar extended by 6 months

Date:	28 Oct 2016

Source:	The Economic Times

Reporter:	Bureau

News ID:	6100

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he Union Cabinet on Wednesday approved extending the stock limit on sugar by six months till April 2017, a government release said.

This will enable the state governments to ensure sugar availability and control prices. Also, governments will be able to issue control order with the prior concurrence of central government for fixing stock limits/licencing requirements in respect of sugar, it said.

“This is expected to help in the efforts being taken to improve the availability of these commodities to general public at reasonable rates, and control the tendencies of hoarding and profiteering,” the release said. Sugar is currently quoting Rs40-Rs43 per kg in retail markets.

Food Minister Ram Vilas Paswan has repeatedly said that the government would take any step to ensure prices do not rise beyond the current level. In April, the government had fixed a stock limit of 500 tonne and turnover limit of 30 days for sugar traders in the country--other than those in West Bengal. The limit on stockholding was approved for a period of six months. The stock limit for traders in West Bengal had been kept at 1,000 tonne as sugar is not grown in the state.

After imposing a stock limit on traders and mills, the government had withdrawn the subsidy of Rs4.5 per 100 kg on sugarcane production, and imposed a 20% duty on export to rein in the rise in sugar prices.

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