Business · India Bureau
India tightens sugar stock limits despite sharp price decline
The government has imposed strict curbs on sugar inventory holding even as prices have fallen 15 percent since August. Dealers face a 15-day stock limit from mid-October through November, with select regions allowed higher thresholds.
LSN India ·
In a move that underscores its commitment to managing domestic sugar supplies, the Indian government has implemented stringent restrictions on how much sugar dealers can hold, irrespective of recent price softening in the market.
Effective from October 15 through November 30, sugar dealers across most of the country will be permitted to maintain stocks for a maximum of 15 days only. The restriction represents a tightening of inventory controls even as sugar prices have declined approximately 15 percent since August, signalling easing pressure on the commodity.
Certain regions have been granted exemptions from the uniform norm. Kolkata and its extended metropolitan areas, along with Assam, have been permitted to maintain sugar stocks up to 2,000 quintals, reflecting local supply considerations and consumption patterns in these regions.
The government's decision to maintain strict stock limits despite falling prices suggests efforts to prevent excessive hoarding and ensure equitable distribution across the country. The measure comes as India, a major sugar producer and consumer, continues to balance domestic availability with price stability in the market.