International BusinessGovt imposes stock limit on bulk sugar consumers
The government today imposed stock limit on bulk sugar consumers, allowing them to keep quantities sufficient for only 15 days of their consumption at any point of time. The stock limit would be in force for six months and would be applicable to consumers whose monthly sugar consumption is at least one tonne, the government said in a statement. The move will affect confectioneries, large biscuit and beverage producing units.
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"It came to the notice of the central government that some bulk consumers, consuming sugar as a raw material, have started stockpiling sugar in anticipation of further increase in prices of sugar in the market. This has the effect of obstructing adequate availability of sugar to actual consumers," the statement said.
The stockholding limit on bulk consumers, however, will not apply to any institution belonging to the central government or the state government or a local body or run by a registered charitable trust, hospital, hostel for working men and women and hostel of any educational institution.
Domestic sugar output in the current season (October-September) is estimated at a three-year low of 14.7 million tonnes. Consequently, prices have been on an uptrend. Most companies are selling sugar at an ex-factory price of Rs 3,000 a quintal, almost double to last year’s corresponding realization. At the retail level sugar is selling at a record Rs 34-35 a kg.