Now Reading: Disclose sugar stock after physical verification, NFCSF urges govt
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Disclose sugar stock after physical verification, NFCSF urges govt
The government should disclose the estimated sugar stock after its fortnight-long physical verification to help curb current price rise, said Prakash Naiknavare, MD of the National Federation of Cooperative Sugar Factories (NFCSF).…
The Story in Brief
The government should disclose the estimated sugar stock after its fortnight-long physical verification to help curb current price rise, said Prakash Naiknavare, MD of the National Federation of Cooperative Sugar Factories (NFCSF). Official data show average sugar retail price in Delhi at Rs 49 per kg on August 12, with wholesale prices at Rs 46 per kg after a stock holding limit was imposed last month.
Naiknavare attributed the price spike to perceived scarcity, overselling of quota, and expected low stock of 35 lakh tonnes by season-end. The government had ordered physical verification of stock in all mills from July 24, to be completed by August 14, and imposed stock limits on traders. It is also considering regulating sugar diversion to ethanol to ensure domestic availability.
The Indian Opinion
The sugar price spike appears driven more by speculation than genuine shortage. The government's physical verification is a necessary step to bust exaggerated scarcity narratives. Traders overselling against quotas and fears of El Nino have created a needless panic. Once the actual stock figure is out next week, the market should cool. A key test is whether the government curbs ethanol diversion further, ensuring no supply crunch in November.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
