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Sugar stocks fall after ISMA says price spike speculative
Sugar stocks including Balrampur Chini, Bajaj Hindusthan, Shree Renuka, and Dalmia Bharat fell up to 3% on Monday after the Indian Sugar Mills Association said India does not face a sugar shortage.…
Sugar stocks including Balrampur Chini, Bajaj Hindusthan, Shree Renuka, and Dalmia Bharat fell up to 3% on Monday after the Indian Sugar Mills Association said India does not face a sugar shortage. ISMA president Niraj Shirgaokar said the recent price spike was driven by speculative stocking and lower production because of weather issues.
Millers have been pushing for higher prices, arguing that production costs have risen. The government sets a minimum selling price for sugar and controls exports. The industry body's statement appeared aimed at calming markets and reassuring policymakers that no government intervention is needed.
Indian Opinion Analysis
India’s sugar market moves on a dual policy track: the government sets a minimum selling price and allocates export quotas, while millers operate under biofuel and ethanol blending mandates. A speculative price spike risks triggering a government move to cap prices or release buffer stocks, or to restrict exports further. The ISMA represents millers, who stand to gain from higher prices but also face regulatory backlash. The next signal to watch is whether the food ministry announces an additional release of the monthly quota for open-market sale, typically done when retail prices cross Rs 40 a kg.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
