Skip to main content

India has sufficient stock of sugar NFCSF

The cooperative sector of the sugar industry has advised their sugar mills to avoid any speculative tendency and delay or short sale of sugar any point of time
Sub Category:

The sugar season 2015-16 began with an opening stock of sugar of about 9.1 million tonnes, estimated production of about 25.1 million tonnes and estimated domestic consumption of about 26.0 million tonnes of sugar. Thus, the sugar season 2015-16 is estimated to end with a closing stock at the end of the season i.e. as on September 30, 2016 will be around 7.0 million tonnes of sugar. Thus, India has sufficient stock of sugar available with the mills.

According to National Federation of Cooperative Sugar Factories Ltd(NFCSF), the Government of India has taken all possible initiatives at the appropriate time to make a balance keeping in view the interest of all stake holders of the sugar sector. Such as remunerative ethanol price fixed at Rs.48.50 to Rs.49.50 per litre for EBP programme, waiver of excise duty on ethanol supplied for EBP programme, to curb import of sugar increased import duty on sugar to 40 percent, withdrew duty free import scheme, provide
Rs.6,000 crores soft loan assistance, notified mill-wise ethanol quota, procurement of ethanol under EBP programme streamlined, notified factory-wise minimum indicative export quota of sugar (MIEQ) for 2015-16 season, announced production subsidy of Rs.4.50 per quintal of cane crushed in 2015-16 season, imposed stock holding limits on traders of sugar, imposed export custom duty on sugar (G) 20 percent.

“The basic aims of these initiatives of the Government was to stabilize the prices of sugar at a reasonable level,” MG Joshi, Managing Director, NFCSF said.

In the last week of July 2016, there is an abnormal rise in prices of sugar in the NCDEX market but ex-mill prices of sugar were not shoot-up even sugar traders were not coming forward to lift the sugar. At present, the ex-mill prices of sugar are ruling in the range of Rs 3350- Rs 3375 per quintal. These sugar prices are just to meet the cost of production, repayment of SEFASU (Scheme for Extending Financial Assistance to Sugar Undertakings) loan 2014 and soft loan 2015.

However, the cooperative sector of the sugar industry has advised their sugar mills to avoid any speculative tendency and delay or short sale of sugar any point of time, since there is sufficient stock of sugar for domestic consumption. 

Votes with an average with

Related Story

Cabinet approves revised FRP for sugarcane

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2018-19 at Rs. 275 per…

Jana Bank to bring over 45 lakh customers into banking system

Jana Small Finance Bank today announced the commercial launch of its banking operations. In line with Government of India and Reserve Bank of India's 'Financial Inclusion' agenda, the transition…

Agriculture should be on top of the agenda of the Govt: VP

The Vice President of India, M. Venkaiah Naidu has said that agriculture is the backbone of Indian economy and it should be on the top of the agenda of the government. He was addressing the…