NEW DELHI: The Indian Sugar Mills Association (ISMA) on Monday said there is no shortage of sugar in the country and retail prices are expected to ease in the coming weeks.
Addressing a press conference, ISMA President Niraj Shirgaokar said the recent rise in sugar prices was driven by several factors, including speculative buying by traders and bulk consumers, besides lower production due to adverse weather conditions.
Shirgaokar categorically denied that sugar mills were creating an artificial shortage or pushing up ex-mill prices.
“India does not have a sugar shortage,” Shirgaokar said, adding that prices had already started moderating following the government’s decision to allow duty-free imports of one million tonnes of raw sugar.
He said the country’s closing sugar stock at the end of September was expected to stand at around 35 lakh tonnes, which would provide an adequate supply cushion.
The ISMA president said sugar mills were expected to begin operations around October 15 and produce 10-12 lakh tonnes during October.
However, monthly sugar consumption in October is estimated at 24-25 lakh tonnes, he said.
The industry body maintained that the available stocks, expected domestic production and permitted imports would ensure adequate availability in the market and help ease price pressures.