Govt Caps Bulk Sugar Consumers’ Inventory at 15 Days
Last month, India, the world's biggest sugar consumer, ordered dealers to hold stocks for no more than 30 days, in a bid to bolster supplies
NEW DELHI: Seeking to tame record sugar prices, central government has ordered that no bulk consumer using more than 10 metric tons of the sweetener a month shall hold inventories for more than 15 days, a government order showed on Wednesday.
The order will come into force on September 1 and remain in force until November 30, the notification said.
On Tuesday, Reuters reported that India was considering measures to bolster sugar supplies and rein in record prices, including limited duty-free imports and tighter stockholding limits for bulk traders, potentially allowing overseas shipments for the first time in nearly a decade.
India's sugar demand typically rises from August to November as the country celebrates major festivals such as Ganesh Chaturthi, Dussehra and Diwali, leading to bulk consumers such as biscuit and confectionery makers building inventories ahead of the festival season.
Last month, India, the world's biggest sugar consumer, ordered dealers to hold stocks for no more than 30 days, in a bid to bolster supplies.
Yet, Indian sugar prices have jumped 10% over the past month to a record high and are expected to remain high for at least the next three months as supplies tighten and festival demand gathers pace.
Patchy rains and dry weather conditions have hit the sugarcane crop, which typically requires copious amounts of water for irrigation.
Sugar is politically sensitive in India, where sweets are highly popular and many poorer households rely on it as a cheap source of calories.