Millers Asked to Keep Re­tail Rates of Sugar Be­low 42 a kg


The Economic Times - - Finance & Commodities - Jayashree.Bhos­ale@ times­

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

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