The food and consumer affairs ministry plans to ease stock holding limit on sugar and paddy for traders to improve supplies and clear pipelines stocks.
This was done as sugar production in the 2010-11 crop marketing season rose to almost 24.5 to 25 million tonnes (mt), while consumption was estimated to be around 22 mt.
However, with production in the coming crop season, which starts from October, expected to be even more than this year, the food ministry is considering further easing the stock holding limit. It could even remove it altogether, officials said.
They said the stock holding limit on paddy (de-husked rice), which was imposed in 2009 and thereafter extended for two years, could also come to an end, as rice production in the 2011-12 crop year that starts from July is projected to be almost 102 mt, up from 94.11 mt this year.
In case of rice, states have been empowered to impose stock holding limits and it is upon them to determine the quantity which a trader can hold.
“The matter will be soon referred to an empowered group of ministers and has also been discussed with agriculture ministry officials,” a senior official from the food ministry said.