Maharashtra imposes stockholding limits on sugar

As sugar prices crossed Rs.40 per kg, Centre allowed states to fix stock holding limit.

Source: PTI

With sugar prices rising to Rs.40 per kg level in retail markets, the Maharashtra government has imposed stockholding limits on sugar traders in order to check hoarding and control prices of the sweetener.

Maharashtra, the country's largest sugar producing state, has fixed the maximum limit for sugar at 5,000 quintals that a wholesaler can keep in stock for a period of maximum 30 days after receiving such stock.

According to a government resolution issued, the limit for retailers has been set at 500 quintals for a period of maximum 30 days after they received such stock.

As retail sugar prices crossed Rs.40 per kg, the Centre had allowed the states last month to fix the stock holding limit on sugar.

The Cabinet had given its approval to bring sugar under the purview of stock holding limit, keeping in view the uptrend in prices, an official statement had said.

The Centre has also withdrawn sugar output subsidy of Rs.4.50/kg to mills.

Union Food Minister Ram Vilas Paswan has recently said it would consider lowering import duty on sugar and banning exports of the sweetener if prices spike further from the current level.

Sugar production in India, the world's second largest producer, is estimated to be about 25 million tonnes in the 2015-16 marketing year (October-September), as against 28.3 million tonnes last year.

The Dollar Business Bureau - May 27, 2016 12:00 IST