EGoM may discuss stock holding limit this week

An empowered group of ministers (eGoM) is expected to meet this week to review the stock holding limits on paddy and sugar.

The stock holding limit on sugar was first eased from 200 tonnes per month to 500 tonnes in March to enable traders to hold more quantities of the sweetener.

Officials said the panel of ministers which could meet somewhere around 20th or 21st of this month could also discuss allowing exports of sugar during the current crop marketing year that started in October because of expected bumper harvest.

India’s sugar production in 2011-2012 is projected to be around 26.2 million tonnes, as against 24.2 million tonnes last year.

In 2010-2011, the government had allowed export of 1.5 million tonnes of sugar under the open general licence (OGL) to enable mills to clear their dues.

Recently, Food Minister K V Thomas had said any decision on allowing more sugar exports will be taken only after Diwali.

Meanwhile, the order imposing stock holding limit on sugar was due to expire in September, but was extended by a month because of the ongoing festival season.

Officials said now that bulk of the purchases that are to be made for the festivals already coming to an end, the government could consider lifting the stock holding limits on sugar and also paddy. For paddy, the stock holding limit was imposed in 2009 and thereafter extended by two years.