Centre moves to check rising prices of sugar, onion

Centre on Tuesday imposed stock limit on sugar mills for September and October ahead of the festive season.

Food and Consumer Affairs Minister Ramvilas Paswan said sugar mills will not be allowed to hold more than 21% of their output in stocks by the end of September, and they should bring down stock level to 8% of output by October end.

The intervention comes amidst rising sugar prices. The sweetener is currently selling at more than Rs 40 per kilogram, while the branded sugar is being sold at Rs 50 per Kg.

The government hiked import duty last month from 40% to 50% to curb inward shipment and check price rise.

To check rising onion prices, it asked state governments to hold de-hoarding operations and act against speculators and profiteers.

Onion prices have soared from Rs 15 per kilo in July to Rs 28, while the increase has been much steeper in the metros. Onion is currently being sold at Rs 31 per kg in Chennai, Rs 38 per kg in Delhi, Rs 40 per kg in Kolkata and Rs 33 per kg in Mumbai.

“After examining all the circumstances, Government has inferred that there are other reasons than shortage (of onions) contributing to the abnormal price rise like hoarding, speculation etc,” an official statement said.