Millers Asked to Keep Retail Rates of Sugar Below 42 a kg
Pune: The Centre has told millers that it wants the retail price of sugar to remain below .₹ 42/kg as the supply situation appears to be comfortable even as the industry is divided on whether there needs to be imports or not. “According to the government, ex-mill sugar prices should remain at .₹ 30-31/kg, which will then keep retail prices below .₹ 42/kg,” said a source. Private trade body Indian Sugar Mills Association (ISMA) has claimed that the cost of sugar production has increased to about .₹ 36/kg due to various reasons.
In Maharashtra, sugar production has declined by over 30%. According to sources in Maharashtra’s sugar industry, the total stock of sugar in Maharashtra as on January 31, 2016 (including carry forward stock and production this year) was 48 lakh tonnes. The state expects to produce another 7-7.5 lakh tonnes during the next few weeks. Total sugar availability from Maharashtra will be about 55 lakh tonne till the next crushing season begins on October 1, 2017.
Thus, a section of the industry thinks that sugar availability during the past two months of the current sugar year, will be tight. But, ISMA and sugar refiners are at loggerheads over this issue.
Vinay Kore, vice chairman, Shri Tatyasaheb Kore Warana SSK Ltd, Warananagar & Warana Group, said “ISMA continues to misrepresent estimates so that sugar millers in UP can benefit from the shortage and escalate prices as per their fancy.”
“ISMA has projected production for the year to be 23.5 MMT which is not a true reflection of ground realities. It appears that ISMA’s estimates are put out to benefit millers from North India,” states a release from Kore.
Total sugar availability from Maharashtra will be about 55 lakh tonne till next crushing season