Govt announces more steps to bring sugar prices down

Last Updated: Tuesday, February 2, 2010 - 21:01

New Delhi: Amid spiralling sugar prices which rose by Rs 200 a quintal here on Tuesday, the Government announced more measures to clamp down on hoarders and cartels by further extending the state`s control over stockists till September, besides asking millers to release the commodity every week.

To ensure sugar availability throughout the month and end cartelisation, the Government ordered sugar millers to release the sweetener in four weekly instalments instead of present practice of doing it at the end of the month.

Earlier, the Centre extended sugar price stock limit order till September so that the states can act against hoarders

"The sugar mills shall sell and dispatch non-levy quota released for February on a weekly basis in four instalments," an official statement said here today.
During the first week, mills have to sell 20 percent of their monthly allotted quota, 30 percent in the second week and 25 per cent each in next two weeks, the statement added.

Before the announcement was made, both wholesale and ex-mill prices of sugar jumped Rs 200 to Rs 4,275 and Rs 4,075 a quintal respectively in the Capital. But in Mumbai, it slid by Rs 10 to Rs 4,130 a quintal.
Government officials said splitting the quota into weekly basis has been made as withholding the monthly quota till the last moment for releasing into the open market was one of the factors for the recent spurt in sugar prices.

Many mills defaulted in selling the entire allotted quantity in December that led to the Government impounding 3.60 lakh tonne and putting it for sale through the public distribution system at cheaper rate.

PTI



First Published: Tuesday, February 2, 2010 - 21:01

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