The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its approval for extending the validity of the existing Central Order in respect of Sugar for a further period of six months from 29.10.2016 to 28.04.2017.

The main objective of the decision is to enable the State Governments to issue control order with the prior concurrence of Central Government, for fixing stock limits/licensing requirements in respect of sugar, whenever need is felt by them. This is expected to help in the efforts being taken to improve the availability of these commodities to general public at reasonable rates, and control the tendencies of hoarding and profiteering.

Background

The Cabinet in its meeting held on 27.04.2016, decided to enable the States to regulate supply, distribution, sale, production, stock, storage, purchase and movement etc. in respect of sugar for a period up to six months up to 28.10.2016. Accordingly, vide Notification No. GSR 1584(E) dated 29.4.2016, Department of Consumer Affairs issued the Removal of (Licensing requirements, Stock limits and Movement Restrictions) on specified Foodstuffs Amendment Order, 2016 for enabling the State Government to impose stock limits on sugar upto 28.10.2016. Subsequently, the said Order was merged with all the existing Orders in respect of essential commodities and a consolidated Order G.S.R. 929(E) dated 29th September, 2016 was issued. It has been noticed that the average retail price of sugar has escalated in the recent past, in-spite of adequate availability of sugar stock with the mills. The price rise appears artificial as being mainly due to hoarding of sugar by traders/sugar dealers etc. Such situations in past were dealt with exercising the powers to regulate stock holding limits etc. for sugar. The validity of the current Order in respect of sugar is expiring on 28.10.2016 which caused the reason for further extension of the validity of Central Order GSR No. 929(E) dated 29.09.2016 in respect of sugar up to 28.04.2017.

The current decision will be notified by the Central Government and will be communicated to all the States/UTs. The States/UTs may exercise the powers and issue control orders with prior concurrence of the Central Government.