Release of lower (Smaller than expected) free sale sugar quota by Union government for the quarter beginning July has pushed up prices further by around Rs, 300 per tonne as reported. With this the total rise in price has gone up to Rs. 600 since the beginning of the month. “Ex-mill prices have shot up to Rs. 14,000-14,200 a tonne today with not many sellers in Maharashtra today,” and the authorities should increase the quota by at least 50,000 per month to check further rise a dealer told. The govt. today announced a free-sale quota of 8.50 lakh tonnes each for July and August and nine lakh tonnes for September as against market expectation of nine lakh for July and August each and 9.50 lakh tonnes for September. It is astrange situation appears that on one side the govt. and the industry says there is more than comfortable supply position while on the other hand the ministry keeps strict control on free-sale release. With the result, the consumer has to pay higher price and it discourages mills to export sugar through the season is expected to end with highest-ever closing stock of around 90 lakh tonnes or more than 50% of the current season’s record production of 170 lakh tonnes as reported by agencies. |
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