Press Information Bureau

Government of India

Ministry of Commerce & Industry

05-December-2012 16:12 IST

The average All India retail price of sugar in domestic market during October-November, 2012 was largely stable and in the range of Rs. 39-40 per Kilogram. No announcement of export of sugar during current sugar year (October2012-September 2013) has been made so far.

It is the endeavour of the Government to keep sugar prices under check through a policy of regulated release mechanism. The Government has taken following measures during the months of July to September, 2012 to control prices of sugar in the domestic market:

(i) The unsold non-levy quota of about 2 lac tons from April to June quarter was allowed for sale in the open market upto 14.08.2012 on 13.07. 2012;

(ii) Sugar mills have been directed to sell at least 70% of July- September quota by August, 2012 vide order dated 24.07.2012;

(iii) Additional quota of 2.66 lac tons has been released on 27th July, 2012 to be sold off by 31st August, 2012;

(iv) Another additional quota of 4 lac tons has been released on 7th August, 2012 to be sold off by 31st August, 2012; and

(v) Higher non-levy quota of 40 lac tons for the months of October, 2012 and November, 2012 has been released in the open market on 28.9.2012.

This information was given by the Minister of State for Commerce & Industry Dr. D. Purandeswari in written reply to a question in Rajya Sabha today.

******
DS

Sugar export controls: quota releases and market directives used to stabilise domestic sugar prices and availability. Control of sugar availability and pricing is effected through a regulated release mechanism whereby authorities manage open-market sales and quotas to stabilise domestic retail prices. Measures included permitting sale of unsold non-levy stocks, directing mills to sell a specified proportion of their quarterly quota, and releasing additional non-levy and supplementary quotas with defined sell-off deadlines. No export authorisation for the current sugar year had been announced, and these administrative quota releases and sales directives operate as supply-side tools to influence market availability and price stability.