Now Reading: Govt caps sugar stock at 400 tonnes per dealer till November
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Govt caps sugar stock at 400 tonnes per dealer till November
The Ministry of Food and Consumer Affairs has capped sugar stock at 400 tonnes per dealer until November 30, invoking the Essential Commodities Act. Dealers must sell any excess stock within 30…
The Story in Brief
The Ministry of Food and Consumer Affairs has capped sugar stock at 400 tonnes per dealer until November 30, invoking the Essential Commodities Act. Dealers must sell any excess stock within 30 days of receipt and liquidate holdings above the limit by August 1. The order exempts government stocks and PDS supplies. States may impose stricter limits.
The move follows a 15% rise in ex-mill sugar prices in under a month, which the government calls unjustified by demand-supply fundamentals. Retail prices have climbed to Rs 47.9/kg. An export ban remains in place until September 30. Industry bodies ISMA and NFCSF say there is no shortage and have urged traders to avoid speculative buying.
The Indian Opinion
The government blames hoarders for the 15% price rise in a month, but industry bodies insist stocks are adequate. That gap needs closing. If hoarding is real, the August 1 liquidation deadline will force surplus onto the market and cool prices. If prices stay high, the government's narrative looks thin. Either way, retail rates a week after the deadline will settle the argument.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
