Union Govt decides to extends sugar stock limit

New Delhi June 19(ANI): The Union government has decided to extend ban on hoarding of sugar by six months till January, 2010, to check prices, and approved hike in minimum support price of jute to Rs 1,375 per quintal for 2009-10.

The decision was taken during the meeting of Cabinet Committee on Economical Affairs (CCEA) on New Delhi today.

Informing this to media after the meeting, Home Minster P Chidambaram said the extension of the order is expected to help in the efforts being undertaken to tackle the problem of rising prices of sugar and also improve its availability.

The government issued an order in March, to check sugar hoarding for four months.

Under the stock limit order, a dealer can stock up to 2,000 quintals of sugar, except for Kolkata, where the limit id 10,000quintals because it is the largest trading centre for the commodity in the country.

Though the guidelines of the Centre have put restriction on the maximum quantity a trader can keep, states are free to lower it.

It also prescribed that a trader has to sell his stocks within 30 days from the date he receives the sugar.

According to official sources, though sugar prices are currently under control in the domestic market, the government does not want to take any chances for un expected rise during festival season.

Meanwhile the Government increased by 10 per cent the minimum support price of jute to Rs 1,375 per quintal for 2009-10.Chidambaram said jute production is estimated at 95.31 lakh bales during the 2008-09 season, compared with 102.21 lakh bales in the previous season, the increase in the MSP is expected to encourage the farmers to step up investment in jute cultivation. (ANI)