The government will probably limit the stocks of sugar in the factories | Kolhapur News


Kolhapur: The Union government plans to restrict the stock of sugar mills so that the rest of the production can be marketed. The idea is to ensure more supply in the market so that prices do not increase drastically. The mills are requested to store a maximum of 37% of their total production.
A formal announcement on the standard is expected within days, a senior official with the state cooperation department said.
Current retail market prices for sugar are between Rs 40 and Rs 45. Every year, prices increase during the festival season. To avoid this, the government has decided to limit the stock of sugar to 37% of total production. The mandatory export quota will not be included in this stock limit.
PG Medhe, a consultant to the Chhatrapati Rajaram Cooperative Sugar Mill, said here that mills would only be allowed to hold 37% of stocks from October 1. This would cause mills to sell more sugar on the retail market and the oversupply would keep prices down. under control.
A veteran trader said Union and state governments are aware that people will not buy more sugar just because prices are falling.
Sugar production in the state has steadily increased over the past three years. Unsold sugar led to the accumulation of stocks and pressure on factories. There has been government financial assistance to factories, but its scope is limited. If the government had increased its aid, the factories could have sold the sugar on the market, sources said.
In June, the Maharashtra State Cooperative Bank, the first state-level bank among the cooperative sector, kept the valuation of sugar unchanged at Rs 3,100 per quintal. This has helped to stabilize prices in the wholesale market as well as in the retail market.
Actual prices, however, fluctuate around Rs 3,550 to Rs 3,600 per quintal.


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