New Delhi: Ex-mill sugar prices have declined by around 20% in recent days, with retail prices also beginning to fall, the government said on Friday, assuring consumers that there is no shortage of sugar in the country.
The government said physical verification of stocks at sugar mills found adequate supplies, with several mills holding more sugar than declared in their monthly returns. Some mills were also found to be resorting to short selling, restricting market supplies despite having sufficient stocks.
To ensure faster movement of sugar, the government will introduce a fortnightly allocation system from September, replacing the existing monthly quota. Mills will have to sell at least 40% of their allocation in the first week and the remaining quantity in the following week.
Mills have also been directed to dispatch sugar within seven days of sale. The government said the measures will help prevent artificial shortages, hoarding and speculative stocking.
The new sugar season is expected to further boost supplies. Crushing will begin from October 15, with more than 10 lakh tonnes (LMT) of sugar expected in October and around 45 LMT in November.
The government said additional production from Karnataka and Maharashtra would also strengthen availability, particularly ahead of the festive season.
