Government crackdown halts sugar sales, leaves 86,000 bags stranded in Bahraich warehouse

Sugar prices have risen in Bahraich, leading to a slowdown in offtake from local mills as tighter government controls on wholesalers and agents discourage buying. The development has left thousands of sugar sacks piled up in warehouses, raising concerns about unsold inventory.

Deputy Cane Commissioner of Devi Patan Division Dr. R.B. Ram conducted a surprise inspection of the sugar warehouse at IPL Sugar Mill, Jarwal Road, Bahraich, accompanied by Senior Cane Development Inspector Maizapur Suneel Kumar Shukla. During the visit, officials carried out a physical verification of the sugar stock stored in the warehouse to assess the actual inventory position.

Unit head T.S. Rana explained that sugar offtake has come to a halt since 26 August due to the government's crackdown on wholesalers and agents. He revealed that an allocation of 1,005 bags of sugar had been made at a rate of 56.50 rupees, but the quota lapsed as it was not lifted in time. The stricter enforcement measures appear to have disrupted the usual supply chain, leaving dealers hesitant to procure stock.

Currently, the mill's warehouse holds a stock of 86,347 bags of sugar lying dumped. The accumulated inventory underscores the impact of regulatory pressure on market dynamics. With wholesalers under scrutiny and prices climbing, the mismatch between supply availability and market demand has become evident. The situation reflects broader tensions in the sugar sector, where pricing policies and enforcement actions are influencing trade flows and inventory management at the mill level.