The cooperative sugar mills segment has attributed present high retail prices of sugar to the artificial scarcity scenario that is being created as the full free sale quota released by the government is not reaching the markets. | |
| M R Desai, president, National Federation of Cooperative Sugar Factories, pointed out that this year the government has released a higher sugar quota for the January-March quarter, but this has not had the desired impact on prices. |
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| The government has been under pressure to release more sugar for free sales in view of the rising consumer prices. |
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| This year, the sugar release quota for the January-March quarter was raised by 1.5 lakh tonne to 39.5 lakh tonne, from 38 lakh tonne in the same quarter last year. |
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| "But the resultant drop in sugar prices was evident only in areas where the prices were reasonable even earlier," Desai said in a statement. |
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| In the areas where the prices were showing volatility, the price fall was minimal. |
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| "This goes to prove that the released quantity of sugar is not reaching the market and an artificial scarcity scenario is being created," he said. |
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| He urged the sugar factories and the sugar merchants to ensure easy availability of sugar to consumers. They should ensure that the released quota was lifted, sold and reached to consumers in time. |
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| Desai hailed the government's bid to strike a balance, in meeting the interests of sugarcane growers, sugar manufacturers and consumers. |
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