Govt imposes sugar stock holding limits
NEW DELHI: Government on Tuesday issued an order capping the stock of sugar at 400 tonne with any dealer at any point of time till November 30 and traders have been directed to liquidate excess stock by August 1.The directive, which will come into force from August 1, also says that the dealers need to sell the sweetener within 30 days from the date of receipt. Food ministry, which invoked the Essential Commodities Act to issue a gazette notification imposing restriction, said this is being done to prevent hoarding, protect consumer interests, maintain price stability and ensure a transparent and efficient sugar supply chain.”Government has observed that the recent increase in ex-mill prices of sugar is not supported by the prevailing demand-supply fundamentals…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..” the ministry said.To keep prices under check amid a forecast of a deficit monsoon, the Centre has banned sugar exports.The order would not apply to sugar stocks held on govt account, or by dealers nominated by the state government.
