Kathmandu. Ahead of the start of the festive season, the Modi government has taken strict measures to stop the stockpiling of sugar.
Taking a strong stand on the stock of sugar, the central government of India has set limits and clearly stated that sugar can be stored only for 15 days. The order will come into effect from September 1. Dealers and traders trading more than 10 metric tonnes of sugar per month will not be able to stock more than the new limit.
On August 1, the Indian government had set a 30-day stock limit for sugar dealerships and now announced to reduce it to 15 days. Due to the festive season and the ever-increasing prices of sugar, the central government seems to be active in stopping stockpiling. It has reduced the sugar stock limit for bulk buyers.
Applies until November 30. Where will the impact be?
As per the new limit, wholesalers and dealerships consuming more than 10 metric tonnes of sugar per month will not be allowed to keep stock for more than 15 days. The new rules will come into effect from September 1 and will remain in place until November 30. Its scope includes sweets, soft drink manufacturers, food processing industries and confectionery sellers.
Strict Surveillance on Traders
With this change in the stock limit of sugar, the Indian government will keep a strict vigil on the traders. They will be identified on the basis of various criteria, including their average monthly consumption in the last 1 year. Sales from sugar mills directly to wholesale consumers or through dealers will also be monitored. The sale and consumption will be verified on the basis of GST returns and HSN code of sugar.
Record increase in the price of sugar{
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The central government’s move ahead of the festive season is expected to see a sharp rise in demand for sugar in August-November. Recent data shows that the price of sugar has reached record levels. The price of retail sugar has increased by about 13-14 percent in just one month.
With this change in the stock limit of sugar, the Government of India aims to stop stockpiling, increase availability and control prices. It is to be noted that the central and state governments as well as the administrative and local bodies in the Union Territories will be exempted from this order.
Meanwhile, the retail price of China has reached Rs 120 per kg in Nepal. On the eve of the festival, the price of China has increased, the backs of consumers have been shaken, and the black market of China has also started. However, the government has not been able to take concrete steps in this regard.
