Ex-mill sugar prices in the country fell by almost 20 percent, softening started in the retail market also.

उपभोक्ता मामले, खाद्य एवं सार्वजनिक वितरण मंत्रालय ने शुक्रवार को कहा कि देश में एक्स-मिल चीनी कीमतों में लगभग 20 प्रतिशत की गिरावट दर्ज की गई है और अब खुदरा बाजार में भी चीनी के दाम नीचे आने लगे हैं। सरकार के अनुसार, आपूर्ति शृंखला में कीमतों का प्रभाव धीरे-धीरे पहुंचता है, इसलिए आने वाले दिनों में खुदरा स्तर पर भी कीमतों में और नरमी देखने को मिल सकती है।

The ministry said that the government is continuously monitoring the price, stock and supply situation of sugar across the country. After the sharp rise in prices in recent times, the government took many active steps, the effect of which is now visible in the market. According to the ministry, the fall in prices at both ex-mill and retail levels indicates that the major reason for the recent price rise was not actual shortage, but hoarding and speculation.

Physical verification campaigns of stocks were conducted by the government in sugar mills across the country. During investigation, in many cases it was found that some mills had more sugar stock than the declared figures. This verification drive made it clear that there is no shortage of sugar in the country and there is no justification for panic buying or additional storage.

The ministry also reported that in some cases sugar mills were resorting to "short selling", meaning less quantity of sugar was being released to the market than they were supposed to sell under the monthly quota. Such activities affect the supply in the market despite adequate stocks and put unnecessary pressure on prices.

The government also observed that despite sugar being sold at the beginning of the month, buyers did not pick it up from the mills till the end of the month, creating an artificial shortage in the market. To improve this situation, the government has decided to replace the monthly quota system with a fortnight-based sugar allocation system from September. Under the new system, sugar mills will have to release at least 40 percent of the allotted quantity in the market in the first week and the remaining quantity in the next week. Apart from this, the government has directed the sugar mills that it will be mandatory to dispatch the sugar from the mill premises within seven days after the sale.

The government believes that the system of fortnight-based quota and mandatory supply within seven days will speed up the movement of sugar, allowing it to reach directly from mills to wholesalers and then to consumers quickly, while reducing the chances of hoarding and speculation. Besides, big consumers have also been advised not to keep more stock than their actual requirement. The ministry said that the new crushing season is going to start from October 15. It is estimated that more than 10 lakh metric tons of sugar will be produced in October itself. The government has also allowed mills to sell the sugar produced in October without any additional restrictions, so that the new season sugar can be available in the domestic market as soon as possible.

According to the government, about 45 lakh metric tonnes of sugar is likely to be produced in November, which will further strengthen the supply in the market and help in keeping the prices stable. The ministry reiterated that there is adequate availability of sugar in the country and there is no need for consumers to panic or make additional purchases. The government is closely monitoring the market and will continue to take further appropriate interventions as and when required.

Prime Minister Narendra Modi was welcomed with warmth and enthusiasm by the Indian community in Tashkent on Saturday.

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