The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has given its approval
for extending the validity of the existing Central Order dated
27.10.2016 in respect of sugar for a further period of six months from
29.04.2017 to 28.10.2017.
The main objective of the decision is to enable the State Governments to
issue control order with the prior concurrence of Central Government,
for fixing stock limits/licensing requirements in respect of sugar,
whenever need is felt by them. This is expected to help in the efforts
being taken to improve the availability of these commodities to general
public at reasonable rates, and control the tendencies of hoarding and
The current decision will be notified by the Government and communicated
to all the States/UTs for further action at their end.
The Cabinet in its meeting held on 27.10.2016, decided to enable the
States to regulate supply, distribution, sale, production, stock,
storage, purchase and movement etc, in respect of sugar for a period up
to six months. Accordingly, S.O. 3341(E) dated 27.10.2016 was issued,
for enabling administrative department, States & UTs to decide stock
limits etc. on sugar upto 28.04.2017, by amending the Removal of
Licensing Requirements, Stock limits and Movement restrictions on
Specified Foodstuffs Order, 2016 dated 29.09.2016 notified as G.S.R.
The prices of sugar are being monitored by the Department of Food &
Public Distribution regularly at factory gate as well as in the domestic
market. In September, 2016 it was noticed that the retail prices had
shown a sudden spurt. The price rise appeared to be more on sentiment
than actual shortage. In order to regulate supply of sugar and address
issue of speculative prices, fixing of appropriate stock limit on need
basis was essential. In addition, despite adequate availability of
stocks for consumption in the current season, hoarding and consequent
profiteering is anticipated due to drop in production over previous year
and hence further extension of stock limit would be needed.
To support the sugar sector, the Government had recently extended soft
loan assistance of Rs.4305 crore to the industry which has been directly
credited to farmers account on behalf of sugar mills through banks
benefitting about 32 lakh farmers. Also a performance based production
subsidy has been extended @Rs.4.50 per quintal of cane crushed which was
directly credited to the farmers account on behalf of sugar mills.
In order to maintain domestic prices at reasonable levels, the
Government has allowed import of a restricted quantity of 5 lakh MT of
raw sugar at zero duty by millers/refiners having their own refining
capacity. This restricted quantity will help the sugar industry to
augment their liquidity and enable them to pay cane dues of farmers.