Sugar millers in the state are hopeful of an early lifting of stock limit on traders, which they say, will boost the now-flagging price of sugar in markets. Both the National Federation of Cooperative Sugar Factories and the Indian Sugar Mills Association have made presentation to the government asking for an ease of the stock limit on traders to boost prices. The central government had imposed stock limit on both mills and traders just before Diwali to prevent sky rocketing of sugar prices in retail markets. By the end of October, mills were supposed to have only 8 per cent of the sugar produced with them. The move had led to large scale sale of sugar by the millers and a subsequent drop in the retail prices. Similarly, stock limit was put on traders to prevent hoarding of sugar. Since the start of the sugar season in the 2017-18 fiscal, prices of the sweetener have fallen by Rs 400 per quintal. Ex-mill gate prices are now between Rs 3,200 and Rs 3,400 a quintal with reports coming in for sales at lower prices as well. Some mills in Marathwada have reportedly sold sugar below the Rs 3,200 mark also. The free fall of sugar prices had set alarm bells ringing among millers who claim it would be difficult for them to pay the designated fair and remunerative price (FRP) of Rs 2,550 per tonne to growers. Sugar prices, they had said, should be in the range of Rs 3,500 to Rs 3,600 per quintal to enable them to pay the grower. Officials of both the Federation and the ISMA had met officials of the civil supplies department to seek immediate removal of the stock limit on traders. This, the officials said, would boost sugar prices by Rs 100 per quintal at least. Rohit Pawar, the newly-elected Vice-President of the ISMA said he was hopeful of a positive feedback from the ministry. “The stock limit was anyway set to lapse by end of December but there are indications that it might be removed earlier,” he said. Meanwhile, sugar millers also want a reduction of export duty on sugar to zero as well as a total import ban on the sweetener. These, the millers said, were necessary in view of the decision of Pakistan to provide export subsidy to 15 laky tones of sugar, which they say, will eat up India’s traditional market of Bangladesh. Philippines, millers said, has put a ban on sugar import and they want a similar ban to be introduced in India as well.
