New Delhi. The softening of sugar prices before the festive season has given relief to common consumers. In recent weeks, sugar prices in the retail market have come down by about 10 percent from their high levels. Along with this, the government has also changed the stock holding limit for large wholesale consumers.
Decreased from Rs 65 to around Rs 58.50 per kg
According to government data, the retail price of sugar had reached around Rs 65 per kg in August. Now the price has come down to around Rs 58.50 per kg. That means consumers have got a relief of about Rs 6.50 per kg. This decline is considered significant amid increase in demand for sweets and other food products during festivals.
25% reduction in prices at mill level
The ex-mill price of sugar has also declined by about 25 percent. However, the full impact of reduction in mill prices is not yet visible in the retail market. The Food and Public Distribution Department has appealed to the traders to pass on the benefits of price relief to the customers.
30 days stock to big consumers
Keeping in mind the festive demand, the government has increased the stock limit for large bulk consumers who use more than 10 tonnes of sugar as raw material every month. Earlier such traders could keep stock for maximum consumption of 15 days, now this limit has been reduced to 30 days. This includes sweets, biscuits, confectionery, soft drinks and other food and beverage businesses.
Conditions will be necessary for additional stock
The government has not given exemption to purchase from the domestic open market to hold stock for additional 15 days. This additional quantity can be kept only from sugar imported under AAS or TRQ. In case of sugar purchased from the domestic market, the consumption limit of 15 days will remain applicable.