Sugar prices down but govt remains cautious, keeps close watch on market
On Oct 1, the govt tightened the limits further, allowing dealers to hold no more than 1,000 quintals and for a maximum of 15 days from Oct 15 to Nov 30
Sugar prices have dropped from an August peak of ₹65 per kilogram to the present ₹53 per kilogram, but the government remains vigilant on market conditions. After allowing one million tonnes of duty-free raw sugar imports in August to boost domestic availability, officials have maintained tight controls over the market. Since July, central and state teams have physically inspected sugar stocks at mills to prevent hoarding and create the appearance of scarcity.
Despite the price decline by early September, the government reduced the dealer stock limit from 4,000 quintals to 2,000 quintals on September 15, citing hoarding and speculative trading concerns. Three days later, the Centre instructed bulk consumers to submit their sugar inventories weekly via the food department's online portal.
On October 1, the government further limited dealers to holding no more than 1,000 quintals for a maximum of 15 days from October 15 to November 30, emphasizing the need to prevent hoarding and ensure supplies during the festive season. Experts note that ₹53 is now the new minimum sugar price. The government has permitted one million tonnes of duty-free raw sugar imports, conducted stock checks, and imposed limits on the amount of sugar dealers can store.
As of October 15, dealers are only allowed to hold up to 1,000 quintals and for no longer than 15 days. Pallavi Singhal, who reports on agriculture, food policy, and rural economics from New Delhi, details the government's actions in this latest development.
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