New Delhi, July 28 (IANS) In a bid to prevent hoarding and ensure a transparent and efficient sugar supply chain, the government on Tuesday announced to impose stock holding limits on sugar dealers across the country that will come into effect from August 1 till November 30, 2026.
According to an official statement, all sugar dealers will be required to declare their sugar stocks and update their stock position on a weekly basis through the Department of Food and Public Distribution’s online portal.
The Department will continue to closely monitor the sugar market and take all necessary measures to ensure the adequate availability of sugar at reasonable prices, said the Ministry of Consumer Affairs, Food and Public Distribution.
“In order to curb hoarding, discourage speculative trading and ensure the continuous availability of sugar at reasonable prices, the Government has decided to impose stock holding limits on sugar dealers,” said the ministry.
The measure is aimed at maintaining orderly supplies in the domestic market, safeguarding consumer interests, and ensuring that genuine trade and distribution activities continue without disruption.
The statement further stated that the government observed that the recent increase in ex-mill prices of sugar is not supported by the prevailing demand-supply fundamentals.
It also came to notice of the government that hoarding by certain traders, dealers and market intermediaries, along with speculative transactions and paper trade without the actual physical movement of sugar from mills, has contributed to creating an artificial perception of scarcity in the market.
“Such practices have resulted in avoidable price volatility and an increase in both ex-mill and retail sugar prices. The government assures consumers that adequate quantities of sugar are available in the country to meet domestic consumption requirements,” said the statement.
As a result, the government has imposed stock holding limits on sugar dealers, according to the ministry.
–IANS
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