SUGAR: capping of stocks in mills to lower sugar prices

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The government on Tuesday imposed stock limits on sweets, a move to keep prices stable during the holiday season when consumption increases. He also called on states and Union territories to take action against onion traders who engage in speculation and hoarding. When announcing the measures, Food Minister Ram Vilas Paswan said there was no shortage of sugar for domestic consumption.

The mills can hold up to 21 percent of the sugar available with them in September, but by October, they will need to reduce the inventory level to 8 percent, Paswan said. Already, there is a stock limit of 500 tonnes for traders.

T Sarita Reddy, president of the Indian Sugar Mills Association, said factories had minimal inventories as the season drew to a close. “We urge factories not to hold stock and to continue selling to keep prices in check with the start of the holiday season,” she said.

According to the industry, the total availability of sugar in the country at the end of July was 8.29 million tonnes. Of this total, around 4.35 million tonnes are estimated to be consumed in August and September. “None of the states are expected to own more than 21% of shares by the end of September.

But there could be specific factories in the states that could hold sugar in anticipation of higher prices. They will now have to release him, ”said a sugar trader from Gurgaon. Factories in Maharashtra tend to hold stocks, he added.

Total sugar available in the 2016-17 season was 28.3 million tonnes, including carry-over stocks, domestic production and gross imports. Sugar prices in Maharashtra and Uttar Pradesh wholesale markets have remained stable at Rs 3,637 per kg over the past month. However, in southern India, prices have increased by Rs 1-2 per kg in recent days to reach Rs. 38-39.

The government has also called on states to take measures to ensure sufficient availability of onions at reasonable prices. States can impose stock limits on onions and undertake measures such as hoarding operations, actions against speculators and profiteers, the Food Ministry said in a press release. This was made necessary due to an abnormal rise in prices in recent weeks, particularly from the end of July, although the production and supply of ions is better than at the same time a year. last, he said.

The retail price of onions fell from Rs 15 per kg to Rs 28.94, the ministry said. In the subways, the increase was highest at Rs 31 per kg in Chennai, Rs 38 in Delhi, Rs 40 in Kolkata and Rs 33 in Mumbai.

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