Indian govt should disclose sugar stock after physical verification, says Naiknavare of NFCSF
Market worried about over-selling of domestic sugar quota, though wholesale prices have dropped a tad after Centre imposed stock holding limit
National Federation of Cooperative Sugar Factories (NFCSF) Managing Director Prakash Naiknavare has called for the Indian government to disclose the estimated sugar stock post physical verification, which could alleviate the current price surge. This demand comes as speculation arises that sugar stock at the end of the current season on September 30 might fall to approximately 35 lakh tonnes, insufficient to meet demand in the initial two months (October-November) of the next season.
NFCSF pointed out that information on sugar stock has been shared with all stakeholders, yet there has been an overselling of sugar against the allotted quota. The wholesale price has diminished to around ₹46/kg from approximately ₹48 following the implementation of the stock holding limit. Naiknavare explained that these factors - perceived sugar scarcity, Super El Nino impact on the crop, and market disturbance due to overselling of quota - have contributed to the price rise.
Retail market prices have risen by 8% and 7% in the wholesale market over the past month, according to Consumer Affairs Ministry data. However, actual increases are higher in Delhi and other regions, reaching ₹55-56/kg from about ₹46-48/kg a month ago. The government announced a physical verification of stock in every mill on July 24, with the exercise to be completed by August 14.
A stock limit was also imposed on July 28, allowing traders to keep a maximum of 400 tonnes of sugar till November 30. NFCSF's MD emphasized that the government should announce the sugar stock number following the physical verification report to curb further speculation.
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