Order on stock limits, licensing of sugar extended till April 2017

New Delhi, Oct 27 (IANS) The Union Cabinet on Thursday approved extending the validity of the existing central order on stock limits and licensing requirements on sugar for a further six months from October 29 to April 28, 2017 so as to ensure reasonable prices and curb on hoarding.

The decision was taken at a cabinet meeting presided over by Prime Minister Narendra Modi, said a cabinet communique.

The decision’s main objective is to enable the state governments to issue a control order, with the prior concurrence of central government, for fixing stock limits and licensing requirements for sugar. This will help in efforts being taken to improve availability of these commodities to general public at reasonable rates, and control the tendencies of hoarding and profiteering, the release said.

The cabinet, in a meeting on April 27, had decided to enable states to regulate supply, distribution, sale, production, stock, storage, purchase and movement of sugar for a period of six months up to October 28.

Accordingly, the department of Consumer Affairs issued the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on specified Foodstuffs Amendment Order, 2016 for enabling the states to impose stock limits on sugar.

Official sources further said that it has been noticed that the average retail price of sugar has escalated in the recent past, despite adequate availability with the mills.

“The price rise appears artificial as being mainly due to hoarding of sugar by traders or sugar dealers etc. Such situations in past were dealt with exercising the powers to regulate stock holding limits for sugar,” the release said.