The Centre has relaxed the stockholding limit for bulk sugar consumers ahead of the festive season, allowing them to hold stock for up to 30 days instead of the earlier 15-day limit, as retail sugar prices have eased by nearly 10 per cent over the past three weeks.
The move comes as retail sugar prices have fallen from around Rs 65 per kg to Rs 58.5 per kg, even as demand is expected to rise during the festival season. The food department noted that while ex-mill sugar prices have dropped by nearly 25 per cent, this decline has not been fully passed on to consumers through the supply chain. It has urged wholesalers, retailers and other trade players to immediately pass on the price reduction.
Bulk consumers, including large confectionery makers, biscuit manufacturers, soft drink and beverage companies, sweetmeat sellers and halwais, are covered under the revised norms. Currently, industrial users consuming more than 10 tonnes of sugar a month as raw material are permitted to hold stock equivalent to 15 days of consumption. Under the new rule, this limit has been doubled to 30 days, but with a condition: any stock held beyond the earlier 15-day limit must be sourced from sugar imported under the tariff rate quota or the advance authorisation scheme.
The Centre has permitted imports of 10 lakh tonnes of sugar under the tariff rate quota and has allowed domestic sale of export-bound sugar procured under the advance authorisation scheme. Sugar sourced from the domestic open market will continue to be capped at the existing 15-day consumption limit.
The government has also made it mandatory for bulk consumers to declare their sugar stocks every Friday on the food department’s online portal, a measure aimed at improving transparency and monitoring stock movement during the high-demand festive period.
(Source: The Times of India)
