AISTA Seeks Higher Sugar Stock Limit For Kolkata Dealers Ahead of Festival Season

The All India Sugar Trade Association (AISTA) on Wednesday urged the government to raise the sugar stock limit for dealers in Kolkata and adjoining areas to 1,000 tonnes from the current 400 tonnes, warning that the lower cap could disrupt supplies ahead of the festival season.

The government had imposed a uniform stock limit of 400 tonnes on sugar dealers nationwide on July 28 to curb hoarding and speculation.

AISTA Chairman Praful Vithalani said that when similar stock limits were imposed in March 2009 and October 2016, Kolkata and its adjoining areas were allowed a higher limit of 1,000 tonnes in recognition of the region's distinct supply chain.

"Under the current notification, this limit has been significantly reduced by 60 per cent to 400 tonnes, which raises doubts about the availability of sugar or lower supply," Vithalani said in a statement.

Neither West Bengal nor the northeastern states have operational sugar mills or refineries, he said, adding that the region's entire sugar demand is met through full railway rakes transported from major producing states such as Maharashtra and Uttar Pradesh. A single rake carries about 2,700 tonnes of sugar.

"Restricting dealers to a 400 tonnes stock limit makes it virtually impossible for local traders to clear and store rake loads efficiently, which may lead to severe logistical bottlenecks," Vithalani said.

Kolkata serves as the main distribution hub for sugar supplies across West Bengal, while Guwahati serves the same function for the seven northeastern states, AISTA said. The trade body said it had twice asked the central government over the last week to raise the stock limit to 1,000 tonnes for Kolkata and its surrounding areas to ensure smooth sugar supply during the upcoming festival season.

AISTA also asked the government to authorise state governments to set stock limits above 400 tonnes based on local demand, supply conditions and rake availability, similar to a mechanism used in 2009.

The association said it remained committed to working with the government to ensure uninterrupted sugar supply across the country.