Government halves sugar stock limit for dealers to curb hoarding

New Delhi: The Centre on Tuesday further tightened stock-holding norms for sugar dealers, slashing the limit from 4,000 quintals to 2,000 quintals with effect from September 15 to November 30, in a bid to rein in high retail prices of the sweetener.

The food ministry said the earlier limit of 4,000 quintals, imposed on August 1, will continue to apply in Kolkata and its extended metropolitan areas, “considering the specific market requirements of the region.” Under the amended rules, no dealer can hold any stock for more than 30 days from the date of receipt or exceed 2,000 quintals of sugar at any time anywhere in the country.

Faulty sugar estimates leave a bitter tasteThe ministry said the move is intended to ensure adequate availability of sugar in the domestic market and to check hoarding and speculative trading. It explained that Kolkata sources sugar from Uttar Pradesh and Maharashtra and supplies it onward to the eastern and north-eastern states, which is why the higher limit has been retained there.