The government of India has implemented a series of proactive measures to maintain stable retail sugar prices and thwart unscrupulous activities in the sugar market. Chief among these is the mandatory disclosure of sugar stock positions for traders, wholesalers, retailers, big chain retailers, and sugar processors on the Department of Food and Public Distribution's portal (https://esugar.nic.in) every Monday.
The introduction of mandatory weekly stock disclosure is a crucial step forward in the Indian government's ongoing efforts to foster a fair and balanced sugar market. By combatting hoarding and speculation, the Government aims to ensure that sugar remains affordable for all consumers. This initiative empowers regulatory authorities to closely monitor stock levels and respond swiftly to any signs of market manipulation.
This fully digital system is poised to facilitate a smoother sugar market while acting as a deterrent against those looking to engage in speculative transactions. Moreover, it will provide real-time data on sugar stocks, equipping the Government with valuable information to make informed policy decisions as and when the need arises. This data will be instrumental in mitigating the impact of rumors surrounding rising sugar prices on both consumers and the industry.
In addition to these measures, the Government of India is also calling for cooperation from sugar mills and traders to comply with relevant laws and monthly domestic quota norms. Stringent actions will be taken against mills found in violation of these norms.
As of August 2023, India boasts a comfortable sugar stock of 83 LMT (Lakh Metric Tonnes), with crushing expected to begin in October 2023. This ample supply ensures that there is no shortage for upcoming festivals. In fact, the Government has already released the first tranche of domestic sales quotas, totaling 13 LMT, which sugar mills can immediately begin selling. Additional quotas will be released in due course, taking into account prevailing market conditions.
With these proactive measures in place, India is well-prepared to maintain price stability in the sugar market, benefitting both consumers and the industry alike.
