Government scraps sugar stock limit for traders

New Delhi: The government has withdrawn limits on sugar stocks that dealers can keep as the demand-supply situation is comfortable and likely to remain stable, a government statement said.

Sugarcane crushing in the new season 2017-18 has commenced in all major sugar-producing states. The government estimates sugar production of 24.9 million tonnes in the new season, which is the same as the estimated demand of 25 million tonnes. "However with the carry over stock, total availability of sugar is sufficient to meet the estimated domestic requirement. There will be smooth availability and prices in the domestic market are expected to remain stable at reasonable levels," it said. "Given the current comfortable position of production and to smoothen supply chain for easy availability, the government has withdrawn stock holding and turnover limits on dealers with immediate effect," it said.