‘Limit on stock stops sugar purchase for the time being’

Times of India – 4 September 2017, Kolhapur: The central government’s decision to put a limit on sugar stock will impact sugar purchase as traders are waiting for further decline in prices.

The central government has ordered sugar millers to keep sugar stock at 21% in September and 8% in October. It has forced millers to sell sugar at any cost within the given period. The central government has taken the decision to facilitate smooth sugar supply during the festive season.

Millers will now have to sell excess sugar in September and October to comply with the government’s order. It will bring more sugar in one market and prices will come down. But traders have stopped purchase and are waiting for further decline in prices.

Sugar expert P G Medhe said, “The purchase of sugar has stopped after the decision. Even the market price of sugar has come down by Rs 50 per quintal in the wholesale market. The traders are waiting for sugar to arrive in the market. Thereafter, they will purchase it at lower prices. If excess sugar reaches the market then the price will automatically come down which is not in the favour of millers and farmers.”

Sugar trader Atul Shaha said, “The limit on stock has slowed down the purchase in the market. Traders are not interested in buying. New purchase will take place only after Ganesh festival. Now prices are at Rs 3,620 per quintal and can come down by Rs 50.

Executive director of Chhatrapati Shahu Maharaj cooperative sugar factory Vijay Autade said, “It is true that the limit on stock has slowed down the market. The readers are waiting for new stocks. But I do not see a major fall in price in the coming days due to demand from northern state. Prices will remain stable around Rs 3,600 per quintal.”