Cabinet may soon take up proposal to extend sugar stockholding limit.

The Union Cabinet is likely to soon take up a proposal to extend the stockholding limit for sugar traders for another six months. The consumer affairs ministry has floated a Cabinet note to extend the stockholding limit to maintain adequate supplies in the market and keep prices under control. In April 2016, the government has fixed a stock limit of 500 tonne and a turn over limit of 30 days for sugar traders in the country, except for those in Kolkata and adjoining areas. The limit in these areas was 1,000 tonne as West Bengal does not produce sugar despite being one of the major markets and a key consumption centre for the sweetener. The limit on stockholding was initially approved for a period of six months, which ended on Sep 30. On Oct 27, it was retained for another six months, which ends on April 28. To ensure sufficient supplies, the govt has on April 5 allowed the import of 500,000 tonne of raw sugar under the tariff rate quota till June 12. The deadline was later extended to June 30.