Indian sugar mills association

Don't push up sugar prices: Govt to mills

Date:	23 Jan 2017

Source:	The Times of India

Reporter:	TNN

News ID:	6336

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NEW DELHI: The government has "forewarned" sugar mills from pushing up prices of the sweetener artificially and it has told industry representatives it would not hesitate to take steps to keep rates under check. The retail prices of loose sugar has increased by Rs 8 per kg in the past one year and by at least Rs 2 a kg in the past one month. Increase in prices of sugar has become a matter of concern for the government just before the state polls in Uttar Pradesh and Punjab.

Sources said food ministry has informally told representatives of sugar industry body, ISMA not to exploit the sentiment of low production of sugar this year to make a killing. "We can assess the cost of production and whether they are artificially pushing the retail prices. This won't be allowed at any cost," afood ministry official said. Sugar production this year is estimated at 22.5 million tonnes, which is the least in the past five years. Sources said the government has an action plan ready to rein in prices if necessary. But this will be rolled out once the production of sugar for this year is re-assessed. In its report on "State of Sugar Industry", market research agency Care Ratings said all India output is expected to decline for the second year in a row and production is likely to stand at around 22.5 million tonnes in sugar year October 2016-September 2017. Centre has maintained there will be no shortage. There is already a carry-over stock of 7.71million tonnes of sugar and another 22.5 million tonnes fresh sugar is estimated to be produced this year, which will be sufficient

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