NEW DELHI: To prevent imports and hoarding of sugar, the Central Government has decided to impose stockholding limits on sugar dealers nationwide, effective from August 1.
This order will remain in effect until November 30. The government has assured consumers that sufficient quantities of sugar are available in the country to meet domestic consumption needs.
The government has noted that the recent rise in ex-mill sugar prices does not reflect actual demand and supply. Hoarding by traders and speculative transactions are creating a false perception of scarcity in the market.
Given the concerns regarding sugar availability and the potential adverse impact of weather conditions on future production, the government stated, “In order to curb hoarding, discourage speculative trading, and ensure a continuous supply of sugar at reasonable prices, the government has decided to impose stockholding limits on sugar dealers.”
There is an apprehension among policymakers about a potential sugar crisis, especially during the upcoming festive season in October and November. In May, the government implemented a ban on sugar exports till September 30. However, in February, exports of sugar were permitted.