India imposes sugar stockholding limits on bulk consumers, tightens curbs

NEW DELHI: India, seeking to tame record sugar prices, has ordered that no bulk consumer using more than 10 metric tons of the sweetener a month shall hold inventories for more than 15 days, a government order showed on Wednesday.

India, looking to tame record sugar prices, has ordered that no dealer using more than 10 metric tons of the sweetener per month shall hold inventories for more than 15 days, a government order showed on Wednesday.

The order will come into force on September 1 and remain in force until November 30, the notification said. On Tuesday, Reuters reported that India was considering measures to bolster sugar supplies and rein in record prices, including limited duty-free imports and tighter stockholding limits for bulk traders, potentially allowing overseas shipments for the first time in nearly a decade.

India’s sugar demand typically rises from August to November as the country celebrates major festivals such as Ganesh Chaturthi, Dussehra and Diwali, leading to bulk consumers such as biscuit and confectionery makers building inventories ahead of the festival season.