Industry hails govt decision

The sugar industry, which is under pressure due to a bumper stock, has welcomed the government's decision to increase buffer stock to 5 million tonnes, but wanted more measures to correct the demand-supply mismatch.

"The step is in right direction. But a lot more needs to be done to correct the imbalance between supply and demand," Indian Sugar Mills Association Director General S L Jain said.

The government should take additional measures such as creating infrastructure at ports, which would get affected during the monsoon, to maximise exports, he added.

"It is a timely step. We welcome the decision as it would give some relief to the sugar industry. This will arrest the decline in sugar prices," Maharashtra State Cooperative Sugar Factories Federation Managing Director Prakash Naiknavare said from Mumbai.

Maharashtra's sugar production for the 2006-07 season ending September is the highest in the country, with an estimated output of 92-94 lakh tonnes.

Hailing the decision, Simbhaoli Sugars Finance Director Sanjay Tapriya said the price of sweetener would remain stable. Besides, the carrying cost of the commodity would get reduced by up to Rs 15-16 a quintal per month.