Govt rules out slapping limit on sugar stocks

The government today ruled out imposing limit on stocks of sugar a trader can keep, amid speculations that such curbs might be slapped to check possible hoarding and contain the price rise.

“There is no plan to impose stock limits (on sugar) as of now,” Food and Agriculture Minister Sharad Pawar said on the sidelines of a conference here.

Sugar prices in India, the largest sugar producer after Brazil, have risen dramatically this season, starting October, due to a projected 32 per cent decline in the output to 18 million tonnes, prompting the government to allow millers to import duty-free sugar and sell in the domestic market.

Trade sources were anticipating curbs on stocks, keeping in mind the general elections this year.

According to the data maintained by the Ministry of Consumer Affairs, retail prices of sugar have shot up to Rs 25 in some of the major cities as on February 13 from Rs 20 in the beginning of the 2008-09 season. Addressing the conference of vice-chancellors of agricultural universities, Pawar called for “integrated farming systems approach involving appropriate combinations of crop husbandry, livestock, horticulture, vegetable, goatry, piggery, fishery, apiculture, mushroom, sericulture, etc”.

The minister hailed the efforts of scientists as the country witnessed the increase in the production of foodgrain by four times, horticultural crops by six times, fish by nine times, milk by six times and egg by 27 times since 1950-51.

Pawar also stressed a “continuing need to develop quality human resource” to propel the growth story in the sector as about 52 per cent of the country's population directly depends on agriculture.

The country's agriculture sector grew 4.5 per cent in 2007-08 after witnessing a dismal 2.5 per cent expansion during the 10th-Plan period (2002-07).