Mumbai: Leader of the Opposition, Radhakrishna Vikhe Patil, has alerted Maharashtra chief minister Devendra Fadavis about the possibility of a sudden rise in sugar prices due to speculative activities by hoarders and fly-by-night operators in Maharashtra and in several other states.

"We failed to check spiralling prices of pulses due to the administration's failure. On sugar prices too, the situation is more or less similar. I called on the CM to seek his intervention. If the government does not step in immediately, it will be difficult to control the prices of sugar in the market,'' Vikhe Patil said.

He pointed out that in view of massive sugar production, the National Democratic Alliance government had granted permission to export 40 lakh metric tonnes. "Despite huge sugar production, higher by 13% compared to last year, and permission for export of 40 lakh metric tonnes, no significant volume has been exported due to the sudden rise in domestic prices. Sugar prices in the domestic market have gone up by 20% in the last one month,'' he said.

Vikhe Patil alleged that future trading in sugar was leading to a systematic cartelization of the trade by hoarders, which was detrimental to the interest of farmers, sugar producing mills and consumers. "Traders and hoarders are holding large stocks of sugar in warehouses across India to create an artificial demand, resulting in a panic-like situation in the domestic market. I have told the CM to check the activities of speculators and hoarders,'' he said.

Taking cognisance of Vikhe Patil's warning, Fadnavis said if there are deliberate attempts to halt sugar exports, the government will collect sugar from mills at regulated prices for the public distribution system.

At the annual general meeting of Pune's Vasantdada Sugar Institute, he said it was found that quite many sugar mills failed to achieve the target of sugar exports, even though if there is a loss in transaction, the Centre pays Rs 320 per quintal as a special grant. "If there is a rise in prices of sugar in the domestic market, all-out efforts are made to halt exports. We will act against erring sugar mills if they indulge in profiteering and hoarding,'' Fadnavis said.