Big relief in sugar prices before the festive season
Now, as the holy season of big festivals like Durga Puja, Diwali and Chhath is approaching in the country, preparations for sweet dishes have also started. However, the skyrocketing sugar prices for some time had spoiled the household budget of the common man and had soured people's mood. But now just before the festive season, a very relieving news has come out on the sugar front. Within the last three weeks, the retail prices of sugar have fallen by almost 10 percent, due to which the prices have come down from Rs 65 per kg to Rs 58.5 per kg. Apart from this, the Central Government has also doubled the stock limit for traders who use sugar on a large scale, so that there will be no shortage of sugar in the market during festivals.
The whole truth about relaxation in stock limit and fall in retail prices
According to media reports, amidst the festive season, the Central Government on Friday announced a major relaxation in the limit of stock holding for bulk sugar consumers. Now these traders will be able to keep the sugar stock with them for full 30 days instead of the current 15 days. This important step has been taken by the government at a time when the price of sugar in the retail market has fallen from Rs 65 per kg to Rs 58.5 per kg. During the festive season, the demand for sweets and dishes skyrockets, in which sugar is used the most, hence this decision is considered very important to manage the market.
Food department's warning, instructions to provide full benefits to customers
Even though there has been some reduction in the retail prices, the Food Department has clearly told the industry that the benefit to the customers is still less compared to the huge fall in the prices of sugar coming out of the mills. According to the department's data, the price of sugar at the mill gate has decreased by about 25%, but its full benefits are not reaching the common consumers through the supply chain. In view of this, the Food Department has given strict instructions to all the wholesalers, retail shopkeepers and other people associated with business to immediately pass on the full benefit of this fall in prices to the common customers.
Bulk consumers get big discount with a special condition
The scope of this new exemption given by the government includes big confectionery companies, biscuit manufacturers, soft drink and beverage manufacturing companies, sweet sellers and confectioners. Industrial consumers who use more than 10 tonnes of sugar per month as raw material have now been allowed to hold stock equal to 30 days' consumption instead of 15 days. However, a major condition has also been attached to it that whatever additional stock will be kept above the old 15 day limit, it should be only from sugar imported under Tariff Rate Quota or Advance Authorization Scheme.
Strict orders from the government and information will have to be given on the online portal
The Central Government has made it clear that a total of 10 lakh tonnes of sugar has been allowed to be imported under the tariff rate quota. Apart from this, sugar earmarked for export under the Advance Authorization Scheme has now been allowed to be sold in the domestic market. However, the limit for keeping stock of sugar purchased from the domestic open market is still limited to 15 days of consumption. The government has made it mandatory for all bulk consumers to upload complete information about their sugar stock on the official online portal of the Food Department every Friday.