NEW DELHI: Ahead of the festive season, Centre Friday relaxed the stockholding limit for bulk sugar consumers, allowing them to hold sugar for up to 30 days instead of the existing 15 days, as retail prices have eased by nearly 10% over the past three weeks.The move comes at a time when the retail price of sugar has fallen from around Rs 65 per kg to Rs 58.5 per kg, while demand is expected to rise during the festival season.However, the food department indicated to industry that the decline in retail prices had not kept pace with the sharp fall in ex-mill prices. It noted that while ex-mill sugar prices have dropped by nearly 25%, the benefit has not been fully passed on to consumers through the supply chain. It urged wholesalers, retailers and other trade players to immediately pass on the price reduction to consumers.Bulk consumers include large confectionery makers, biscuit manufacturers, soft drink and beverage companies, sweetmeat sellers and halwais. At present, industrial users consuming more than 10 tonnes of sugar a month as raw material are permitted to hold stocks equivalent to 15 days of consumption. The department said the limit has now been doubled to 30 days, but with a condition. Any stock held beyond the earlier 15-day limit must be sourced from sugar imported under the tariff rate quota or the advance authorisation scheme.Centre has permitted imports of 10 lakh tonnes of sugar under the tariff rate quota and allowed domestic sale of export-bound sugar procured under the advance authorisation scheme. Sugar sourced from the domestic open market will continue to be capped at 15 days’ consumption.Govt has made it mandatory for bulk consumers to declare their sugar stocks every Friday on the food department’s online portal.
