Sugar stocks: ISMA slams speculators for ‘creating panic’

NEW DELHI: Slamming ‘few' speculators and sugar refineries for spreading rumours about shortage of sugar in the current 2016-17 season, industry association ISMA on Friday said there is no need to import the sweetener with enough stocks position and surplus production expected next year.

"Some people, with vested interests, are trying to confuse the market by simply throwing various numbers for sugar production and consumption for the country in 2016-17 season," Indian Sugar Mills Association (ISMA) President T Sarita Reddy said in a statement.

Their estimates, mostly made without any analysis and research, is causing speculation and volatility in the sugar market and spiking sugar prices unnecessarily, she said.

"A few speculators and sugar refiners continue to spread rumours to suit their personal vested interests and create opportunities for themselves to import sugar," Reddy said.

Their ulterior motive is to create panic to either artificially push up global prices because they are holding a position in the futures market or want to somehow import sugar into India, she added. Unlike the sugar millers, the ISMA President said: "The speculators and refiners have no responsibility towards our farmers, domestic sugar manufacturers or even the domestic consumers, and therefore have a short-term gain in mind."