Tuesday, August 25, 2009

Stock holding restrictions imposed on bulk consumers of sugar

The government has taken a string of measures to moderate the prices of sugar in the open market - like permitting import of raw sugar / white (refined) sugar at zero duty under different categories and restrictions.
Central Government has issued an order on 22.08.2009 imposing stockholding limit on consumers, whose average consumption of sugar are in excess of 10 quintals per month, that they shall not keep in stock, at any manner, sugar exceeding fifteen days of such use or consumption, for a period of six months.
This restriction does not apply to to any institution belonging to the Central Government or the State Government or an Union Territory administration or a local body or run by a registered charitable trust, hospital, hostel for working men and women and hostel of any educational institution.

The step was taken after reports the some bulk consumers who use sugar as a raw material were stocking up in anticipation of further rise in sugar prices. This stock piling by the bulk consumers had resulted in effectively obstructing availability of sugar to actual consumers.

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