Today Government has released 4 lakh tonnes of additional sugar in the open market to bring down the retail prices which has been surged by Rs 5 a kg in the past one month, according to PTI report. An official release told, “The additional quantity of 4 lakh tonnes has been released from the production stock to be sold and delivered/dispatched for August.”
Taking into account of this additional allocation, the overall availability of sugar for this current quarter ending September will be 51.66 lakh tonnes, it said. It further added that the government has alerted that if the mills fail to sell the complete additional quota in the current month, then the unsold sugar will be added to Public Distribution System. Sugar sector being controlled by the government, Food Ministry will decide upon the quality of sugar that mills should sell in the open market and through ration shops.
The Food Ministry has released the addition sugar for sale in the open market to dip the retail prices which has been increased by Rs 5 a kg in the last one month to Rs 39-40 a kg in the national capital. The rise in sugar prices is based on the fear that there would be shortfall in sugar production in the 2012—13 marketing year starting October 2012 owing to poor rains, market experts said.