In a proactive move, the Indian government has allowed sugar mills to start selling sugar from Tuesday after allocating 14 lakh tonnes (lt) for the second fortnight (October 16-31) of this month. This is because ex-mill prices have surged by nearly ₹1,000/quintal in the past 10 days. However, the next 25 days will be crucial to guard against further spurt in prices as traders anticipate negligible stock at mill levels.
Total quantity released for sales in the second fortnight will be 16-14 lt to domestic sugar mills and 2 lt to importers, the Order issued by the Food Ministry showed.
Official sources said that in view of the current spurt in ex-mill sugar prices in the past 10 days, the quota announcement has been made two days in advance, and it would take care of the demand of the trade in view of the upcoming Diwali festival, to be celebrated on November 8. The government had received complaints that some mills had exhausted their sugar sales quota of October 1-15 period and thereby unable to sell and the information also is said to have fuelled speculation of low stock and current price rise, sources said.
