‘Can’t hold more than 10 tonnes’: Govt sets 15-day sugar stock limit for bulk consumers
The Indian government has imposed a 10-tonne sugar stock limit for bulk consumers from September to November to curb rising prices. This measure aims to increase domestic availability amid concerns over supply shortages and the diversion of sugarcane for ethanol production.
Why it matters
Rising sugar prices impact inflation and food processing costs, making supply management critical for the Indian economy.
NEW DELHI: The government has imposed a stock limit on sugar for bulk consumers, including confectionery makers, soft drink manufacturers, food processing industries, sweetmeat sellers and other institutional buyers. These consumers can hold a maximum of 10 tonnes of sugar for 15 days.The stock limit will be from September 1 to November 30.The price surge also comes amid growing focus on the diversion of sugarcane towards ethanol production under the government’s E20 programme. The government is looking at reducing the amount of sugarcane diverted for ethanol in the sugar season beginning October, which could leave more cane available for sugar production and help ease domestic prices.
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