New Sugar Stock Limit Rule to Come into Effect on October 15

New Delhi: The Union Ministry of Consumer Affairs, Food and Public Distribution states that the changes made to sugar storage limit rules to curb hoarding have had a positive impact on prices. This measure is helping ensure an adequate and uninterrupted supply and availability of sugar at reasonable prices for general consumers during the festive season. Compared to peak levels, the ex-factory price of sugar has dropped by approximately 28 percent, and the retail price has fallen by 15 percent.

According to a statement issued by the Ministry, the government has decided to reduce the sugar storage limit for dealers to 1,000 quintals and the storage duration to 15 days; this will be effective from October 15, 2024, to November 30, 2026. This rule will not apply to Kolkata and its extended metropolitan areas or to Assam, as sugar is procured there from other states.

Under the revised provisions, starting October 15, sugar dealers will not be permitted to hold stock for more than 15 days after receipt, nor can they hold more than 1,000 quintals of sugar at any given time. Barring specific exceptions, this rule will apply uniformly across the country. However, considering the specific needs of these regions, dealers in Kolkata (and its extended metropolitan areas) and Assam will be allowed to hold up to 2,000 quintals of sugar stock.

Dealers and stockists in Kolkata primarily procure sugar from Uttar Pradesh, Maharashtra, and Karnataka to supply the eastern and northeastern regions of the country. The higher storage limit for Assam has been set in view of its geographical constraints and transportation-related challenges.