Mills offloading more sugar to check price rise

Sugar mills have started offloading more sugar in the market following a government direction to keep prices at check ahead of festival season, industry body NFCSF said today.
Retail prices are ruling in the range of Rs 45-50/kg in most places, as per the government data. However, the NFCSF said there was some impact on wholesale rates after the offloading of sugar and prices were ruling down at Rs 36.50- 36.75 per kg today.
The mills were directed to improve sugar supplies in the market at an emergency meeting called by the Union Food Secretary last week. The meeting was attended by Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories Ltd (NFCSF).

"The cooperative mills across the country have specifically been told to enhance their supplies to the non- sugar producing states like Rajasthan, West Bengal, Jharkhand and all North East states," Prakash Naiknavare, managing director of NFCSF said.
Mills in Maharasthra and Uttar Pradesh, the top two producing states, have offloaded 44 per cent and 33 per cent of their stocks respectively, he said.
Karnataka and Haryana have supplied 51-52 per cent, while Gujarat is offloading 40 per cent of its stock in the market, he added.

The government has cautioned mills that it would not hestitate to take stringent steps like imposing stock limits or imports to boost domestic supplies and contain price rise.

To ensure sufficient supplies during the forthcoming festival season, NFCSF has suggested the government to advance sugarcane curshing season to augment stock availability, the industry body added.
Sugar production is estimated to be lower at 21 million tonnes in the 2016-17 season (October-September) from 25.1 million tonnes in the previous year. The country has last year's stock and has also imported 5 lakh tonnes at zero duty to meet the demand of 25 million tonnes.