India
Centre rejects ethanol diversion link to sugar price rise, warns mills against profiteering
The Centre said sugar stocks remain adequate despite lower output, blamed the industry for the sharp price rise, and ordered states to act against hoarding and black marketing. It also approved duty-free imports of 10 lakh tonnes of raw sugar and is considering tighter stock limits.
The Centre on Friday dismissed claims that diverting sugar for ethanol production is driving the sharp rise in sugar prices. It instead blamed the industry for raising prices despite sufficient stocks to meet domestic demand.
According to the government, sugar production has fallen to 306 lakh tonnes, but stocks are still adequate. Food Secretary Sanjeev Chopra said precautionary measures have been taken, including approval of duty-free imports of 10 lakh tonnes of raw sugar by October 31 and the imposition of stock limits on dealers and bulk consumers such as soft-drink and ice-cream manufacturers.
The government has asked sugar-producing states to crack down on hoarding, black marketing and speculation. It is also preparing mills for an early start to the crushing season around October 15 and is considering tightening the stock-holding limit for dealers.
- ethanol
- Sugar price
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