India imposes limits on sugar stocks ahead of festive season
NEW DELHI (Reuters) – India, the world biggest sugar consumer, on Tuesday imposed inventory level limits on sugar mills in an attempt to keep prices under control during the upcoming festive season.
Sugar mills will not be allowed to hold more than 21 percent of their output in stocks by the end of September, and they have to bring down stock level to 8 percent of output by the end of October, Indian food minister Ram Vilas Paswan said on twitter.
The measure is aimed at preventing mills from artificially withholding sugar in storage in order to push up prices during the high demand festive season of September and October.
India’s sugar production in 2016-17 marketing year ending on September 30 fell below consumption level, creating concerns of a shortage for the upcoming festive season.
Reporting by Nidhi Verma in New Delhi; Writing by Henning Gloystein in Singapore; Editing by Kim Coghill