The Indian Government has taken proactive measures to address sugar shortage concerns, including a fortnightly quota system and mandatory dispatch of sugar within seven days. These steps aim to prevent artificial scarcity and ensure continuous availability of sugar at reasonable prices.
The Indian Government has initiated a series of proactive measures to prevent artificial tightening of supplies in the domestic sugar market, following a decline of around 20% in ex-mill sugar prices. The government's actions come as retail sugar prices also begin to decrease.
Physical verification of sugar stocks at mills across the country has confirmed comfortable availability, with some mills found to be holding higher stocks than declared in their monthly returns submitted to the Government.
To address issues related to market scarcity, the Government will introduce a fortnightly sugar allocation system from September. This new system aims to closely monitor demand and supply, respond quickly to changes in market conditions, and prevent artificial tightening of supplies.
Mills have been directed to ensure that sugar sold is dispatched within seven days of sale. The combination of fortnightly quota allocation and mandatory dispatch will improve the movement of sugar through the supply chain, ensuring quicker distribution from mills to dealers and ultimately to consumers.
Additional sugar is entering the market as refiners have been permitted to sell converted sugar brought under the Advance Authorisation Scheme. Dealers/bulk consumers holding excess stocks are also offloading sugar.
Sugarcane crushing for the new season will commence from 15 October, with more than 10 LMT of sugar expected to be produced during the month. The Government has also permitted sugar mills to sell sugar produced during October without restriction, ensuring early availability of new-season production.
The Government assures consumers that there is no shortage of sugar in the country and that all necessary measures will be taken to ensure adequate and continuous availability of sugar at reasonable prices across the country, particularly during the festive season.
Source:
Press Information Bureau
