Govt Tightens Sugar Stockholding Limit To 15 Days As Prices Hit Record Highs

New Delhi, Aug 20 (KNN) The government has tightened sugar stockholding limits for bulk dealers in a bid to increase market supplies and contain record-high prices ahead of the festive season.

Bulk Dealers Face 15-Day Stockholding Limit

Under an order issued on Wednesday, dealers using more than 10 metric tonnes of sugar a month will not be allowed to hold inventories for more than 15 days, reported Reuters

The restriction will come into effect from September 1 and remain in force until November 30.

The move follows a 30-day stockholding limit imposed on dealers last month. Despite the measure, domestic sugar prices have risen around 10 per cent over the past month to record levels amid tightening supplies and expectations of higher festive-season demand.

Festive Demand Expected to Push Consumption

Sugar demand typically increases between August and November as festivals including Ganesh Chaturthi, Dussehra and Diwali drive higher consumption.

Bulk users such as biscuit and confectionery manufacturers also build inventories during this period.

Uneven Rainfall Raises Sugarcane Concerns

India, the world's largest sugar consumer, is also facing concerns over sugarcane production due to uneven rainfall and dry weather conditions, which can affect the water-intensive crop.

The latest stockholding restrictions come amid government consideration of additional measures to improve domestic sugar availability, including limited duty-free imports and tighter inventory norms for bulk traders.

Government Targets Price Stability Ahead of Festivals

Sugar prices remain a politically sensitive issue in India given the commodity's widespread consumption and importance to household food budgets.

The government order will remain effective through November 30, covering the peak festive-demand period.

(KNN Bureau)