Govt may extend stock limits on sugar traders for 6 months

Government is likely to extend stock limits on sugar traders for next six months till April 2017 in order to check sweetener's prices, which at present are ruling around Rs 40 per kg.
The Food Ministry's proposal on this issue is expected to be approved in the tomorrow's scheduled Cabinet meeting, headed by Prime Minister Narendra Modi.
"The proposal to extend stock limit on sugar traders is listed on the Cabinet agenda," sources said.
In the Cabinet note, the ministry has proposed that the sugar stock limits on traders be extended for six months more till April 29, 2017.
Early this year, the government had reimposed stock limits on sugar traders after a gap of five years due to rise in sugar prices following drop in domestic production.

The stock limits on sugar traders were imposed for six months ending October. Traders were allowed to hold sugar stock of up to 10,000 quintals in Kolkata and 5,000 quintals in other parts of the country.

As per the stock limit order, a dealer was allowed to stock up to 10,000 quintals of sugar in Kolkata, which is the largest trading centre for the commodity in the country. However, the limit was kept 5,000 quintals for rest of the country.
It had also prescribed that a trader has to sell his stock within 30 days from the date of receiving the sugar.

Retail sugar prices are ruling around Rs 40 per kg in most places due to likely fall in domestic production due to back-to-back drought.
Sugar production of India is likely to decline to 23.2 million tonnes in 2016-17 marketing year (October-September) from 25 million tonnes in the previous year.