Indian sugar mills association

Stock Cap put on mills to ease sugar prices

Date:	30 Aug 2017

Source:	The Economic Times

Reporter:	Madhvi Sally

News ID:	22632

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The government on Tuesday imposed stock limits on sugar mills, a move aimed at keeping prices stable during the festive season when consumption increases. It also asked states and union territories to take action against onion traders who engage in speculation and hoarding. While announcing the measures, food minister Ram Vilas Paswan said there was no shortage of sugar for domestic consumption.

Mills can hold as much as 21 per cent of the sugar available with them in September, but in October, they will have to reduce the stock level to 8 per cent, said Paswan. Already, there is a stock limit of 500 tonnes for traders.

T Sarita Reddy, president of the Indian Sugar Mills Association, said the mills have minimal stocks with the season close to an end. "We are urging factories not to hold stock and keep selling to keep prices under check with the beginning of the festive season," s ..

According to the industry, the total sugar availability in the country at the end of July was 8.29 million tonnes. Out of this, roughly 4.35 million tonnes would be consumed in August and September. "None of the states is expected to hold more than 21 per cent stock by September end

But there could be some specific mills within the states which might be holding sugar in anticipation of higher prices. They will now have to release it," said a sugar trader from Gurgaon. Mills in Maharashtra have a tendency to hold stock, he added.

Total available sugar in the 2016-17 season was 28.3 million tonnes, including carry forward stock, domestic production and raw imports. Sugar prices in the wholesale markets of Maharashtra and Uttar Pradesh have remained stable at Rs 3637 a kg ex-mill in the past one month.However, in southern India, prices have increased Rs 1-2 a kg in the past our days to Rs 38-39.

The government has also asked states to take measures to ensure adequate availa bility of onion at reasonable prices. States can impose stock limits on onions and undertake steps like de hoarding operations, action against speculators and profi teers, the food ministry said in a press release. This has been ne cessitated due to an abnormal rise in prices in recent weeks, particularly from July end, though the pro duction and supply of on ions are better than this time last year, it said.

The retail price of onion has increased from Rs 15 per kg to Rs 28.94, the ministry said. In the metros, the rise has been steeper at Rs 31 per kg in Chennai, Rs 38 in Delhi, Rs 40 in Kolkata and Rs 33 in Mumbai

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