Centre Imposes Sugar Stockholding Limit to Curb Price Surge
· Business · Indian Express
The Union government on Thursday imposed a stockholding limit on bulk sugar consumers to rein in a sharp recent price rise. Under an order from the Ministry of Consumer Affairs, Food and Public Distribution, confectioners, soft drink manufacturers, food processors, sweetmeat sellers and other institutional buyers consuming at least ten metric tonne of sugar per month may not hold stocks for more than 15 days. The limit excludes government institutions and links monthly sugar sales from mills to bulk consumers with GST returns and the relevant HSN code. In a parallel move, the Ministry of Commerce and Industry allowed 10 lakh metric tonne of duty-free raw sugar imports under a tariff rate quota until October 31, 2026. The measures come hours before the festive season and follow a 15 per cent sugar price spike over the past month. The government's stated aim is to moderate retail prices ahead of higher winter demand.
Why it matters
Sweet sellers, beverage and food processing firms, and other large sugar buyers face tighter inventory rules that could strain near-term supplies ahead of festivals, while cheaper imported raw sugar may ease domestic price pressure for consumers.
Read the original report — Indian Express
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