MUMBAI: The unprecedented increase in sugar prices by nearly Rs 250 per quintal during the last two weeks could rise further to an unreasonable level if the sale of the buffer stock quantum is kept voluntary, warned an industry body.
The Bombay Sugar Merchants Association has urged the Food and Agriculture Minister, Sharad Pawar to release 16-lakh tonnes of monthly quota for the next three months with the condition of compulsory sale of current production or the buffer stock quantity.
"The huge increase in sugar prices by nearly Rs 250 per quintal during the last two weeks is a very disturbing factor and goes totally against the Government's desire to control inflationary tendencies in the country," the Association's President, Ashok Jain, said in a statement here on Thursday.
This substantial price will certainly contribute towards increase in the rate of inflation during the coming weeks, Jain said.
The Government may permit the mills to sell whatever quantity they deem fit to be included in their released quantity out of the buffer stock. However, it should ensure that the entire monthly released quota of the mills, whether from the current production or from the buffer stock, should be sold by the mills in the said month.
Unless this is done, sugar prices will rise to unreasonable levels and a sort of artificial scarcity will be felt in the market if the sale of the buffer stock is kept voluntary, Jain said.
The country has enough sugar stocks at present to allow the sale of 48-lakh tonnes of sugar during the next three months, Jain added.
