Delhi . The Center on Tuesday further tightened the storage limit for sugar traders, reducing it from 4,000 quintals to 2,000 quintals. This limit will be effective from September 15 to November 30. The government has taken this step to curb the high retail prices of sugar.
What did the ministry say?
The Food Ministry said in a statement that the storage limit of 4,000 quintals, which came into effect from August 1, applies to urban and suburban areas in and around Kolkata. Sector specific market needs will remain unchanged. The ministry said that the objective of this step is to ensure adequate availability of sugar in the domestic market and to prevent hoarding and speculation. Under the amended rules, a trader cannot store sugar for more than 30 days from the date of receipt.
Kolkata exempted from this
Not more than 2,000 quintals of sugar can be stored at any time in any place in the country. Regarding the exemption given to Kolkata, the ministry said that the region sources sugar from Uttar Pradesh and Maharashtra and then supplies it to the eastern and north-eastern parts of the country. For this reason, the earlier limit of 4,000 quintals has been maintained there. This decision has come at a time when retail sugar prices remain high.
Will have to wait for softening of prices
According to Consumer Affairs Ministry data, the all-India average retail price of sugar on August 31 was Rs 63.28 per kg, up 37 per cent from Rs 46.02 per kg a year ago. Wholesale prices also rose 36.28 per cent year-on-year to Rs 58.40 per kg. Industry data shows there has been some moderation in prices at the mill level.
There is sufficient stock of sugar in the country
In Maharashtra, the sugar price at the mill level fell by 30 per cent to Rs 45-46 per kg on September 1, whereas it was at a high of Rs 67 per kg on August 18. The Center accused mills of “increasing” prices and said there were adequate sugar reserves in the country. This has been said despite the production estimate for the 2025-26 marketing year (October-September) being reduced from the earlier 343 lakh tonnes to 306 lakh tonnes. The annual sugar demand in the country is estimated to be around 280-285 lakh tonnes.