To ensure price stability and prevent the hoarding of essential commodities during the upcoming festival season, the Indian government has focused on sugar sales data. The Ministry of Food, in a recent directive, has called upon sugar mills to provide detailed reports of their sugar sales for the months spanning May to August, with a submission deadline of September 12. This move underscores the government’s commitment to maintaining reasonable prices for the public.
Sugar control order
The directive, issued under Clause 5 of the Sugar Control Order, 1966, mandates sugar mills to disclose the quantity of sugar sold to entities other than sugar mills themselves, specifically “traders, wholesalers, and other parties.” A specific format has been provided to submit this critical data to facilitate compliance. The government’s rationale behind this data collection initiative is to comprehensively overview sugar stocks within the country, particularly among traders, dealers, wholesalers, prominent retail chains, and processors. This comprehensive data aims to guarantee an adequate supply of sugar at equitable prices, thus averting potential shortages or price surges during the festive period.
While some sugar industry members have expressed concerns regarding the tight deadline for compliance, others have welcomed the transparency measures. Critics argue that sensitive buyer information, such as PAN numbers, should not be mandated for sharing, even though sugar remains a vital commodity. Those favouring the directive assert that the industry has well-maintained digital records that facilitate prompt compliance.
Reason for panic?
Industry insiders emphasize that there is no cause for panic, given the nation’s substantial sugar reserves. With domestic consumption standing at 27.5 million tonnes against production of 32.8 million tonnes, India maintains a stable sugar inventory. Furthermore, carry-over stock and exports have remained at a consistent level of 6.1 million tonnes each, highlighting the nation’s resilient sugar supply chain.
This proactive government intervention seeks to balance market dynamics and consumer welfare as the festive season approaches. By promoting transparency and monitoring sugar sales, the authorities aim to ensure Indian consumers can celebrate their festivals without facing undue economic burdens.
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