Indian sugar mills association

Stock limit on producers may tame sugar prices

Date:	07 Sep 2016

Source:	The Economic Times

Reporter:	Ram Sahgal

News ID:	5939

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Mumbai: Stock limits on sugar producers, which industry lobby ISMA termed "unprecedented," drove the December 2016 and March 2017 futures contracts on NCDEX up 0.7 per cent and 2 per cent each at the time of going to press.

Consumer Affairs minister Ram Vilas Paswan tweeted over the weekend that each sugar mill should not hold over 37 per cent of total sugar available with it during the 2015-16 sugar season (Oct-Sept). Further, holding limit should not exceed 24 per cent of sugar available with mills during the 2015-16 season.

Abinash Verma, DG, Indian Sugar Mills Association (ISMA), who said he was awaiting a notification from the government, believes that the government was keen on keeping prices of the sweetener in check.

Verma added that 90 per cent of the 530 sugar mills across the country would have no difficulty complying with the order but that the rest might face pressure which could see prices dip a tad.

Sugar at the retail level in Mumbai and Delhi is up 52 per cent and 40 per cent year on year respectively at Rs 41 and Rs 42 a kilo. Verma termed total sugar availability as opening balance plus production during the season minus exports.

Some of the difficulty in offloading sugar could be because of stock limits imposed on dealers in Maharashtra, Uttar Pradesh and New Delhi.

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