INDIA: Government allows mills to sell additional 400,000 tonnes
Published: 08/08/2012, 4:26:47 PM
India has allowed mills to sell an additional 400,000 metric tonnes of sugar in the open market during the July-September quarter to curb a rise in prices that has begun due to fears that weak rains will likely hurt output, according to Dow Jones.
The government in India sets the amount of sugar to be sold in the open market as well as through welfare programs in order to keep a check on prices. Indian sugar prices have risen about 25% to INR35,000 a tonne since the start of the monsoon season June 1.
Total sugar availability will now rise to 5.17 million tonnes during the quarter, a government statement said Wednesday.
Sugar is the only agricultural commodity in India whose distribution is still controlled by the government. The industry has been demanding a lifting of the restrictions.
Meanwhile, the Indian Sugar Mills Association maintained its previous output forecast of 25 million tonnes for the next marketing year starting Oct. 1 and said expected low sugar output in drought-hit states such as Maharashtra and Karnataka is likely to be offset by higher production in Uttar Pradesh and Tamil Nadu.
Monsoon rainfall over India has been around 17% below the long-term average so far this season, which generally runs from June to September.