GOVT CAPS SUGAR STOCK WITH TRADERS, PRICES TO FALL 5-10 PC
New Delhi March 13:
The government today announced capping the sugar stock traders can keep and asked them to sell it off within a month -- a decision expected to cut the price of sweetener by 5-10 per cent.
The central government order will be implemented in 15 days after it is published in the official gazette. "The turnover limits will be 30 days from the date of receipt of stocks by a recognised dealer, while stock holding limit is 1,000 tonnnes for the traders in Kolkata and 200 tonnes for others," the Food Ministry said in a statement.
Traders said that sugar prices might fall by 5-10 per cent immediately after the implementation of this order as dealers would need to offload their stocks quickly. The futures prices of the commodity fell by Rs 15-18 per quintal at NCDEX. When contacted, a government official explained that 30 days is the rotation period within which a trader has to sell its stocks from the date it receives the consignments.
As sugar is mostly packed in 100-kg jute bags, a recognised dealer in Kolkata and its adjoining areas, which is the largest market in the country, can keep a maximum of 10,000 bags at any point of time, while in other parts one can stock up to 2,000 bags, he said. Since Kolkata market caters to the demand of the north- eastern states, the Centre has decided a higher limit for it, he added.
New Delhi March 13:
The government today announced capping the sugar stock traders can keep and asked them to sell it off within a month -- a decision expected to cut the price of sweetener by 5-10 per cent.
The central government order will be implemented in 15 days after it is published in the official gazette. "The turnover limits will be 30 days from the date of receipt of stocks by a recognised dealer, while stock holding limit is 1,000 tonnnes for the traders in Kolkata and 200 tonnes for others," the Food Ministry said in a statement.
Traders said that sugar prices might fall by 5-10 per cent immediately after the implementation of this order as dealers would need to offload their stocks quickly. The futures prices of the commodity fell by Rs 15-18 per quintal at NCDEX. When contacted, a government official explained that 30 days is the rotation period within which a trader has to sell its stocks from the date it receives the consignments.
As sugar is mostly packed in 100-kg jute bags, a recognised dealer in Kolkata and its adjoining areas, which is the largest market in the country, can keep a maximum of 10,000 bags at any point of time, while in other parts one can stock up to 2,000 bags, he said. Since Kolkata market caters to the demand of the north- eastern states, the Centre has decided a higher limit for it, he added.
