In order to keep prices under control during the festival season, the government has imposed stock limits on sugar mills for the next two months. The move would boost availability of sugar in the open market, preventing mills from artificially withholding of sugar during the high demand festive season of September and October.
Food Minister Ram Vilas Paswan said that the mills for the month of September can hold upto 21 per cent of the total sugar available with them and for the October month, the stock limit would be 8 per cent of the total sugar availability with the mills during entire 2016-17 marketing year (October- September).
At present, in retail market sugar prices are ruling at more than Rs 40 per kg, while branded sugar is available at Rs 50 per kg. Recently, with an aim to restrict cheap inward shipments and maintain domestic prices, the government had increased import duty on sugar to 50 per cent, up from 40 per cent.