Agriculture

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
India has sufficient stock of sugar NFCSF

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. 

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BK Jha is the Special Correspondent of Rural & Marketing. Prior to this he has been associated with The Hindustan Times, Political and Business Daily along with many other media organisations.
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