Centre mulls withdrawal of cap on traders storing sugar

Against the backdrop of recent cut in GST rates, the Centre is mulling to withdraw sugar stock limit imposed on traders from December 31. The move is aimed at providing further relief to the traders in the wake of falling sugar prices.

Currently, traders cannot stock more than 500 tonnes of sugar in states other than West Bengal, where the limit is 1,000 tonnes. The government had imposed sugar stock limits for both mills and traders from July this year. Subsquently, the Centre has removed stock limit on sugar mills from November 1 while the traders have not been exempted yet.

In view of the stock limit, traders are not coming forward to take stocks from the mills. Sugar industry made a representation to the Union ministry of food last week with a plea to immediately withdraw stock limit on traders. The Centre has estimated sugar production of 25 million tonnes for the current crushing season.

The National Federation of Cooperative Sugar Factories managing director Prakash Naiknavre told DNA, “Sugar mills are ready to sell but traders are not willing to buy especially when the prices are declining.”

“The sugar industry has pleaded for the removal of stock limit on traders. This is necessitated as the sugar prices have dipped to Rs 3,350 per quintal against Rs 3,600 per quintal a month ago,” he said.