“The measure is aimed at further curbing hoarding, discouraging speculative trading and preventing excessive accumulation of sugar stocks,” the consumer affairs, food and public distribution ministry said in a media statement on Tuesday.
The present stock holding limit of 4,000 quintals on sugar dealers across the country has been in force from August 1. According to new stock limit orders, no sugar dealer can hold more than 2000 quintals of sugar at any time. However, the government has given an exemption to Kolkata and its extended metropolitan areas considering the specific market requirements of the region.
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“The Kolkata area is sourcing sugar from Uttar Pradesh and Maharashtra and supplying to the eastern part of the country, including the North-Eastern region. Therefore, the existing limit of 4,000 quintals has been retained for Kolkata and its extended metropolitan areas,” the statement said. The government expects that the reduction in stock limit will facilitate orderly movement of sugar through the supply chain and ensure its continuous availability to consumers at reasonable prices. “Further reduction of the stock holding limit will ensure that sugar keeps moving to the markets without getting accumulated at any point. The sugar prices cannot increase after these measures,” said Ashok Jain, president of Bombay Sugar Traders Association.