Amid soaring sugar prices, last day for mills to furnish data on stocks sold to dealers
Domestic sugar prices have soared to six-year highs over the past few weeks amid tightening supply caused by limited rainfall and delay in the onset of the crushing season.
Tuesday, September 12, is the last day for sugar mills to furnish data on the associated traders and registered dealers, as directed by the government. In an official communication to sugar mills last week, the government asked sugar mills to collate the data, in a bid to ensure the availability of the commodity in the country at reasonable prices.
According to the order by the Department of Food and Public Distribution (DFPC) under the Ministry of Consumer Affairs, Food and Public Distribution, dated September 8, the government asked chiefs of sugar mills to compile and submit data detailing sugar stocks sold to entities such as traders, dealers, wholesalers, retail chains and processors, by September 12. A copy of the order was sent to industry bodies Indian Sugar Mills Association (ISMA), All India Sugar Traders Association (AISTA) and National Federation of Cooperative Sugar Factories (NFCSF).
The government action—aimed at ensuring the right price and availability of sugar for the consumer—comes just ahead of the country’s festive season, which begins with Diwali in November this year.
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Sugar mills will be required to submit details such as the name, designation, address, mobile number, PAN, and GST number of the authorised person, along with the quantity of the sweetener sold to them each month from May through August, according to the order.
Here’s a look at the form to be duly filled and submitted by sugar mills, according to the order, as shared in the order:
Sugar at six-year highs
Meanwhile, domestic sugar prices have soared to six-year highs over the past few weeks amid tightening supply caused by limited rainfall and delay in the onset of the crushing season. Analysts say concerns over India's sugar production estimates, and the prospect of negligible or nil exports from the country, have fuelled a rally in global sugar prices.
Sugar stocks have registered sharp gains on Dalal Street amid the surge in the benchmark rates of the commodity.
Many experts believe the prices are likely to remain elevated over the next 2-3 months, a period in which the festive season is expected to climax.
India is the world's largest producer and consumer of sugar. It is the second largest exporter of the commodity, after Brazil.