Sugar mills to raise supply after govt nudge to regulate prices

Following direction from the government, Indian Sugar Mills Association (ISMA), the apex industry body has directed mill owners to increase supply to regulate the rising price of sugar. “Immediately after receiving letter from the government, ISMA circulated the same amongst its members with an advice to try their best to control sugar prices and ensure that adequate supply is done in the market. We also discussed the same with our members in the recent managing committee meeting held in Chennai that mills need to ensure that the sweetener prices should not go up,” ISMA director general Abinash Verma told Business Standard. Concerned with rising sugar prices, the Ministry of Consumer Affairs on Friday had directed ISMA to request its member mills to take possible steps to increase the supply in market to curtail prices immediately.

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"While reviewing the sugar sector situation particularly domestic sugar price, it has been observed that the international sugar prices have fallen significantly in past few weeks whereas the domestic ex-mill price and retail price of sugar are in the upward trend, despite availability of sufficient sugar stock in the country. It is, therefore, requested to advise your member mills to ensure demand supply balance and also to ensure that the current upward prices are immediately curtailed," the ministry said. Sugar prices had on Thursday hit three months highest at Rs 4,050 a quintal in spot wholesale market at Vashi, the nearest Agricultural Produce Markets Committee (APMC) from Mumbai. Following similar move, the M-grade sugar contract for delivery in July hit the upper circuit on the National Commodity & Derivatives Exchange (NCDEX), to trade at Rs 3,816 a quintal on Thursday. Sugar futures, therefore, offer a huge arbitrage opportunity, around Rs 250 a quintal , between far and near months. Nifty Trading Tips