Sugar prices headed downwards

Pune, September 05: Sugar prices are set to go down by this month end as the millers are trying to meet the deadline set by the Government to sell the buffer stock in the market.

By September 30, sugar millers across the state will have to offload a little over nine lakh tones of sugar in the market, which includes the buffer stock and the levy free stock slotted by the government for the month of September. The state millers are required to sell about10.35 lakh tones of sugar under its quota for buffer stock out of the 50 lakh tones slated for the entire country, till September end. Millers in the state have already sold around 5 lakh tones of sugar in the market.

“The remaining buffer stock of around 5 lakh tones has to be sold by this month end, in addition to the levy free stock of 4.40 lakh tones meant for the month of September,” said Prakash Naiknavare, managing director, Maharashtra State Co-operatives Sugar Factories Federation Limited. Naiknavare was speaking at a press conference called to dismiss speculations that the price of the Statuary Minimum Price (SMP) for sugar would be increased this year. At present, the sugar prices stand at around Rs 1,700 per tonne. “It may come down to Rs 1550 per tonne by September end,” said Naiknavare. If the millers do not manage to sell the remaining buffer stock of about 5 lakh tones, then the government is eligible to confiscate it under as levy, which would be less economical as the price for levy has already been fixed at Rs 1344 per tonne, he said.

source: indian express