Moneycontrol
Last Updated : Sep 23, 2016 07:14 PM IST | Source: CNBC-TV18

Sugar mills to sell excess stock, Maha may not meet deadline

In an interview with CNBC-TV18, Mahesh Pathak, Principal Secretary of food and civil supplies and consumer protection department at government of Maharashtra said that the GoI and state governments have taken this situation very seriously and have kept an eye on it since July.


Government of India has directed sugar mills to sell their excess output and asked them to hold 37 percent of holding by end of September and to 24 percent by October end.


Sugar mills in Maharashtra may find it difficult to meet the deadline as more than 40 mills have more than 37 percent stock.

In an interview with CNBC-TV18, Mahesh Pathak, Principal Secretary of food and civil supplies and consumer protection department at government of Maharashtra said that the GoI and state governments have taken this situation very seriously and have kept an eye on it since July.

Below is the verbatim transcript of Mahesh Pathak’s interview with Manisha Gupta on CNBC-TV18.

Q: The whole idea that the government had given a directive on September 8 about the stock limit on mills, most of the mills of course were in Maharashtra, how do you read the scenario and the number right now?

A: Like you rightly said, the government has taken this very seriously for a long time now and we have been monitoring the situation. Actually government of India has taken it up very seriously and along with all the state governments. Since July this situation is being monitored. We have had video conferencing. In July, August, and in September there was a meeting also. There were three measures which came up during the discussions and this stock limit for sale to the factories was one of the measures.

The sale has increased since the steps were taken. In June it was only around 3 lakh tonne in Maharashtra, in July it became about nearly 9 lakh tonne. In August also we reached about 9 lakh tonne. In September certainly we have already reached a figure of about 6 lakh tonne till September 15 and I am sure it will be much more than even in July and August.

So, it is not that September 8 is the notification and less time is there but I can tell you that out of 184 factories in Maharashtra only 76 have stocks which are above 37 and there is still time from now till September 30 but to sell that stock.

Q: Do you think all of these mills will be able to meet that deadline, there have been some conversations, of course this is hypothetical as we speak to you but do you see a chance of a deadline not being met?

A: I don’t think so because the sales are happening and there is pressure on the price and prices are holding, they are not going up. There has been a correction and the prices have come down by Rs 50-150 in various markets. We are monitoring Vashi, we are monitoring with the help of NCDEX also, we are keeping a daily watch on the prices and in fact the wholesale prices are depressed and in retail it is holding up around Rs 40.

First Published on Sep 23, 2016 07:14 pm
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