Indian sugar mills association

Sugar mills may not meet stock limits by Sept 30

Date:	23 Sep 2016

Source:	The Economic Times

Reporter:	Jayashree Bhosale

News ID:	5994

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PUNE: It has now become almost certain that sugar mills from Maharashtra will not be able to reduce their stocks to 37 per cent of their total production by September 30 as directed by the central government in order to tame retail prices.

Though the state FDA has started 'persuading' the mills, industry says it's not practically possible to offload such huge quantity within a week, implying there won't be much effect on prices either.

Since the September 8 directive of the central government allowing the mills to keep only 37 per cent of their stocks by September end and 24 per cent by October end, Maharashtra sugar mills have done some heavy selling.

Yet there was only a marginal decline in prices. The NCDEX spot prices of sugar for Vashi delivery were Rs 36.35/kg on September 1 and Rs 36.45/kg on September 22.

With just about 8 working days remaining to meet the deadline, the industry is pretty certain that the target won't be met.

Sanjiv Babar, managing director, Maharashtra State Cooperative Sugar Factories Federation, said, "The breathing period given to the sugar mills should have been sufficient."

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