UP govt mulling to impose stock limit on sugar

NEW DELHI: Uttar Pradesh, the second-largest sugar producing state in the country, is contemplating to impose a limit on sugar stocks millers can keep. "The state is seriously considering to implement stock limit order on sugar in UP," state Food Secretary Jacob Thomas said on the sidelines of a meeting of Food Ministers of different states with Union Food and Agriculture Minister Sahrad Pawar here.

The Centre had convened the meeting to discuss ways to deal with the drought situation that''s facing 246 districts in the country and to check rising prices of essential commodities. In a move to check hoarding and rising prices and also to empower states to undertake de-hoarding operations, the Centre had asked states in February this year to impose a stock limit on sugar.

Retail prices of sugar have surged by up to 70 per cent to Rs 30 a kg in the last one year after output of the sweetener was projected to slump during the 2008-09 season, ending September. On paddy acreage, Thomas said, UP has witnessed 36 per cent less sowing, compared with the year-ago period, which will definitely affect the production.

Chhattishgarh Food Minister Kunnulal Mahale said the paddy acreage in the state has dipped by 15 per cent this year.