By NNN-PTI,
New Delhi : To contain rising sugar prices, the government has decided to release an five lakh tonnes of sugar for August- September and said it would consider additional supplies in the market if prices continue to rise.
“In the last few days prices of non-levy sugar in the open market have increased in spite of much higher availability of sugar in the September quarter, compared to last year,” said a statement by the Department of Food and Public Distribution.(One Lakh:100,000)
The Central Government would monitor the release of first buffer stock of 20 lakh tonnes of sugar to ensure that the entire quantity is released by the mills by September 30 and consider release of more quantities of non-levy sugar if prices of the commodity continues to rise, it said.
Although, for the September quarter the government has provided 48 lakh tonnes of non-levy sugar for domestic consumption, against 36 lakh tonnes in the corresponding period of the previous year, the prices are still rising in the wholesale and retail market.
Market watchers said the sugar prices, which have gone up by up to Rs 500 a tonne during the past few months, could rise further due to upcoming festival season.
For the ensuing 2008-09 sugar season the government estimates production at 220 lakh tonnes, with a possibility of 5-7 per cent increase if the weather condition remains favourable.
According to the estimates, the closing stock at the end of current 2007-08 sugar season would be 110 lakh tonnes, taking the total availability in 2008-09 season at 330 lakh tonnes.