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Sugar Rate Today : Amid rising sugar prices in the country, news of relief for consumers has come to light. According to the government, the ex-mill price of sugar i.e. the price after it comes out of the mill has decreased by about 20 percent. Its effect has now started becoming visible in the retail market also. The government estimates that this change in prices in the supply chain may further reach the retail market.

Government keeps an eye on prices and stocks

According to the Ministry of Consumer Affairs, Food and Public Distribution, sugar prices, available stocks and its movement in the market are being continuously monitored across the country. The government says that despite sufficient quantity of sugar being available, a rise in prices was seen recently. Initial investigation revealed the role of activities like hoarding and betting behind this.

Stock of sugar mills checked

The government launched a campaign to physically check the stock available in sugar mills across the country. During this time it came to light that there is sufficient stock of sugar in the country. More sugar than the declared monthly stock returns was also found during investigation in many mills.

According to the government, it is clear that there is no real shortage of sugar in the country. In such a situation, there is no need for people to panic and buy more sugar than required or keep extra stock at home.

Allegations of artificial shortage due to short selling

During the investigation, information about short selling by some sugar mills also came to light. This means that some mills sold less quantity of sugar in the market than their stipulated monthly quota.

The government says that despite adequate stocks being available, such activities may result in reduced availability in the market, thereby putting upward pressure on prices.

Supply worsened due to delay by buyers

Investigation also revealed some such cases, where sugar was sold from the mill in the beginning of the month, but instead of picking it up immediately, the buyers got it dispatched in the last part of the month. According to the government, this also created a situation of temporary or artificial shortage in the market.

Sugar allocation system will change from September

To maintain regular availability of sugar in the market, the government has decided to implement the allocation system on 15 day basis from September. At present, monthly quota system is running for sugar mills.

Under the new system, mills will be required to sell at least 40 per cent of their total quota in the market in the first week of the 15-day allotment. The remaining quantity will be sold in the next week.

Dispatch will have to be done within 7 days of sale

The government has also directed sugar mills to ensure dispatch of sugar within seven days of completion of sales. The objective of this arrangement is to speed up the supply of sugar from mills to dealers and then to consumers.

The government hopes that this will also help in curbing activities like unnecessary stock accumulation and speculation. Big bulk buyers have also been advised not to store more sugar than necessary.

Supply will increase with the new crushing season

The new sugar crushing season is going to start from October 15. According to estimates, more than 10 lakh tonnes of sugar can be produced in October alone.

The government has decided to allow sugar produced in October to be sold without any restrictions, so that the production of the new season can reach the domestic market soon. Production in November is estimated to be around 45 lakh tonnes. This is expected to help maintain adequate supply in the market for domestic consumption.