Government Mandates Sales Data Disclosure to Prevent Sugar Price Surge During Festive Season

Government Mandates Sales Data Disclosure to Prevent Sugar Price Surge During Festive Season

VoM News Desk | September 13, 2023 | 11:34 AM IST | Breaking News, India | Follow on Google News

Government Mandates Sales Data Disclosure to Prevent Sugar Price Surge During Festive Season. Image/Google

In a move aimed at averting a sharp rise in sugar prices during the upcoming festive season, the Indian government has directed all millers to provide detailed sales data for the past four months, specifically to traders and wholesalers. The government’s concerns center around the possibility of hoarding tactics driving up prices in the world’s largest consumer of sugar, particularly given the heightened demand expected during the festive period.

Monitoring Sales Data to Ensure Price Stability

To address this issue and promote fair trade practices, the government has outlined a submission format for sales data. Millers are required to disclose quantities sold to individual clients, including traders, wholesalers, chain retailers, and supermarkets, for the period from May through August. This directive falls under clause 5 of the Sugar Control Order, a regulatory framework governing the sugar industry.

Crucial Information Required

The specified sales data format demands comprehensive information, including the names of buyers, their tax records, and contact details. By obtaining this data, the government aims to gain complete visibility into stocks held by traders, dealers, wholesalers, and processors. This transparency is intended to ensure the availability of sugar at reasonable prices within the country.

Sugar’s Essential Status and Market Dynamics

Sugar is considered an essential commodity due to its impact on consumers’ daily lives and sensitivity to price fluctuations. Despite concerns of a potential hoarding threat, millers and industry associations have assured the government of sufficient availability, with the crushing of fresh sugarcane harvests scheduled to commence in October.

Mixed Monsoon Impact and Price Trends

However, industry forecasts have raised concerns about the impact of a patchy monsoon on sugarcane output in India, the world’s second-largest producer of sugar. Official data shows that sugar prices have risen by approximately 3% in the past month, although they remain nearly 40% lower than global rates. On September 5, mill prices reached a six-year high.

Government’s Objective: Maintaining Price Stability

The government’s directive to collect detailed sales data aims to maintain price stability and prevent speculative price increases during the festive season. By closely monitoring the sugar market and regulating trade in essential food items, the government seeks to curb consumer inflation. These measures include bans on rice and wheat exports, levying a 40% duty on onion exports, and permitting duty-free imports of pulses.

Adequate Sugar Supply

Despite concerns, some industry insiders believe there is no reason for alarm. Last season’s sugar production reached 32.8 million tonnes, with domestic consumption standing at approximately 27 million tonnes. This suggests ample supply for the season. Additionally, the government is being urged to consider the export of 6 million tonnes to address the surplus stock from the previous year.

VoM News Desk

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