As a proactive measure to combat hoarding and curb unscrupulous speculation in the sugar market, the centre on September 21 issued orders for mandatory disclosure of the stock position of sugar for traders/wholesalers, retailers, big chain retailers and processors of sugar.
The information will have to be updated every Monday on the portal of the Department of Food and Public Distribution.
This mandatory weekly stock disclosure for these entities is another proactive step by the Union government to maintain a balanced and fair sugar market, a release said.
"By preventing hoarding and speculation, GoI is aiming to ensure that sugar remains affordable for all consumers. This proactive measure empowers regulatory authorities to closely monitor stock levels and take prompt action against any potential market manipulation," it added.
The step, as per the centre, will facilitate a smooth sugar market with deterrence to commodity hoarders from any speculative transactions.
The government aims to learn real-time data on sugar stocks, which will further help it to make further policy decisions as and when the need arises, and to mitigate the impact of rumours about rising sugar prices.
The government has asked for cooperation from sugar mills and traders to adhere to the relevant laws and monthly domestic quota norms. "Strict action will be taken against the mills violating the same," it said.
With 83 lakh metric tonnes (LMT) of sugar stock at the end of August 2023 and the expected beginning of the sugarcane crushing season in October 2023, India has sufficient stocks for domestic consumption with absolutely no shortage for festivals. In fact, the government has released the first tranche of the domestic sales quota of 13 LMT, which sugar mills can start selling with immediate effect.
More sales quota will be released depending on market demand. "The government is committed to ensure sugar for domestic consumers at a reasonable price throughout the year," the statement added.
India’s sugar exports touched a record 11 million tonnes in 2021-22 (October-September) after production shot up to 36 million tonnes. Output in the current year is estimated at 33 million tonnes with exports falling to 6 million tonnes.
While the government is likely to announce the sugar export policy for 2023-24 only by January, traders and the industry are already expecting a further drop in outbound shipments.
Preliminary estimates by the Indian Sugar Mills Association (ISMA) project 36.2 million tonnes of sugar production in 2023-24. After diverting 4.5 million tonnes for ethanol production – compared with 4.1 million tonnes this year – the resulting 31.7 million tonnes of sugar will be 3 percent lower year-on-year. With domestic consumption expected at 27.5 million tonnes, there will be a surplus of 4.2 million tonnes, but not all of it may be exported.
In August, the Union government allocated an additional quota of 2 lakh tonnes of sugar for sale during the month in addition to 23.5 lakh tonnes already allotted to mills to boost domestic supply as well as keep a check on prices amid the festive season.
Also Read: India’s sugar exports may fall by half on output decline in 2023-24
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