The Centre has increased the stockholding limit for bulk consumers of sugar from 15 days to 30 days, allowing companies that use sugar in large quantities to maintain stocks equivalent to up to a month’s consumption.
However, the government has specified that any additional sugar stocked beyond the existing 15-day limit must be sourced only from imported sugar.
Extra Stock Must Be Imported Sugar
Under the revised rule, the additional stock can only comprise sugar imported under the Advance Authorisation Scheme and the Tariff Rate Quota.
There is no change in the stockholding limit for sugar purchased from the open market. Such sugar will continue to be subject to the existing 15-day stock limit.
The government has also asked traders and wholesalers to ensure that the benefit of lower ex-factory sugar prices is passed on to consumers.
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Retail Sugar Prices Down 10%
The government said retail sugar prices have declined by around 10 per cent. Sugar was selling at around Rs 65 per kg in August, while the retail price has now fallen to approximately Rs 58.50 per kg.
However, sugar prices at the mill level have declined by around 25 per cent.
According to the government, the reduction in prices at the mill level has not yet been fully reflected in the prices paid by consumers. It has therefore asked traders and wholesalers to pass on the benefit of cheaper sugar to customers.
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