Govt allows states to fix stock holding limit on sugar

To check hoarding and control prices, the Centre today allowed the states to fix the stock holding limit on sugar, which is ruling at over Rs 40 per kg in the retail market.
The Cabinet, chaired by Prime Minister Narendra Modi, has given its approval to bring sugar under the purview of stock holding limit, keeping in view the recent uptrend in prices, an official statement said.
The government noticed that in spite of sufficient availability of stocks with sugar mills, wholesale and retail prices have shown a spurt.
The Centre has taken stock of the availability of sugar and different factors contributing to the rise in market prices across the country.

In order to check the inflationary tendencies in sugar and to reduce hoarding by wholesalers and retailers, the government felt an immediate need to bring the commodity within the purview of stock limits, it said.
"The decision will empower state and central agencies to impose stock limits and regulate supply, distribution, storage and trade of sugar to bring down sugar prices at reasonable level by curbing unscrupulous trading," it said.

Retail sugar prices have been rising since October due to estimates of lower production at 25.6 million tonnes for 2015-16 marketing year (October-September) as against 28.3 million tonnes a year ago.

Its prices crossed Rs 40 per kg at the beginning of this month compared with Rs 30 per kg last October. At present, prices are ruling at Rs 44 per kg, according to the government data.
Sugar prices remained depressed during 2014-15 marketing year on record production and huge carryover stock that led to sharp rise in cane arrears of about Rs 21,000 crore.
However, the prices have been inching up on expectation of lower output and the government's order to mandatorily export 3.2 million tonnes in the ongoing marketing year.
Yesterday, former Agriculture Minister Sharad Pawar threatened that cane growers will come out on the streets to protest if the government takes steps to depress retail sugar prices.