Govt to check hoarding of sugar, onion ahead of festive season
In a bid to ensure easy availability of sugar and check its price during the festive months of September and October, the government has imposed stockholding limit for sugar mills to avoid hoarding.
It has also authorised state governments to impose control measures on onion traders and dealers to ensure adequate availability of the essential commodity at reasonable prices.
“The stockholding limit for the month of September and October has been capped at 21% and 8% respectively of total sugar available with sugar mills during 2016-17 sugar season. For keeping prices of sugar under control during the festival months of Sept. & Oct. 2017 stock limits have been imposed on sugar mills,” consumer affairs minister Ram Vilas Paswan tweeted on Tuesday.
“There is no shortage of sugar for domestic consumption in the country,” the minister had claimed in his tweet.
The consumption of sugar and onions is at an all-time high during the two months that are witness to festivals such as EidUl-Adha, Onam, Maha Navami, Dussehra, Karva Chauth, Diwali, Govardhan Puja and Chhat Puja among others.
The production of sugar in the year 2016-17 was recorded at 203 lakh tonnes as against the consumption of 250 lakh tonnes — a shortfall of 47 lakh tonnes.
However, the government managed the situation and controlled sugar prices from rising as it had a buffer stock of about 77 lakh tonnes last year.
As per the estimates of Indian Sugar Mills Association, sugar production is likely to be recorded at 251 lakh tonnes during current fiscal (2017-18).
The government recently imported about five lakh tonnes of sugar to keep a check on rising prices.
To ensure that the prices of essential commodities are under control, government has allowed states and Union Territories to impose control measures on traders and dealers of onion.
As per the notification issued on August 25, the states may now impose stock limits on onions and undertake various measures such as de-hoarding operations, action against speculators and profiteers.