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10   AgriTech indiA  June 2018                                                                                                        News

                                                                                                         Government set floor

                                                                                                         price of sugar won’t

                                                                                                         impact retail prices:
                                                                                                         Indian Sugar Mills


                                                                                                           ndustry   body   Indian   price arrears on this basis.
                                                                                                         ISugar   Mills   Association   However,  it  welcomed
                                                                                                         (ISMA)  thought  welcomed   other   step   of   providing
                                                                                                         the  Cabinet’s  decisions  of   subsidised  loans  for  ethanol
                                                                                                         extending   a   package   of   production  capacity  as  an
                                                                                                         Rs 8,500 crore to help the sugar   excellent move.
                                                                                                         mills and cane farmers, it said   “ It will encourage setting
                                                                                                         that  it  may  not  impact  retail   up  of  more  distilleries  in  the
                                                                                                         prices significantly.   country over the next 3 years
                                                                                                            “The  decision  to  fix  a   and  will  help  in  diverting
                                                                                                         minimum  ex-mill  sale  price   some of the surplus sugarcane
                                                                                                         of  sugar  at  Rs.  29  per  kilo   into   ethanol   and   reduce
                                                                                                         will  improve  ex-mill  prices   surplus  sugar  in  the  long
                                                                                                         from current levels of around   run.  However  the  decision  to
                                                                                                         Rs.  28  per  kilo,  but  may  not   impose  stock  holding  limits
                                                                                                         impact  the  retail  prices  in   on sugar mills tantamounts to
                                                                                                         any significant way,” stated a   controls on sugar sales which is
                                                                                                         release from ISMA.      not the right way to move into
                                                                                                            The  industry  Association   the  future,”  it  said.  Industry
                                                                                                         has  said  that  the  proposed   expects  creation  of  buffer
                                                                                                         minimum  price  of  Rs.  29  per   stocks of 30 lakh tons that will
                                                                                                         kilo is not enough to cover the   reduce  some  surplus  sugar
                                                                                                         cost  of  sugarcane  at  FRP  of   from the market, though only
                                                                                                         Rs. 290 per quintal at the current   for  a  year,  and  will  improve
                                                                                                         all  India  average  recovery  of   market  sentiments  to  support
                                                                                                         10.8%. “The ex-mill sugar price   domestic prices.
                                                                                                         which  supports  the  current   “What   is   concerning
                                                                                                         FRP  works  out  to  around   is  that  there  is  no  idea  or
                                                                                                         Rs.  35  per  kilo  and  therefore   proposal  on  rationalisation  of
                                                                                                         the  Rs.  29  is  inadequate,”  it   cane  pricing  policy,  which  is
                                                                                                         said.                   actually the main reason for all
                                                                                                            ISMA said that it will be a   the  problems  of  the  industry
                                                                                                         challenge  to  expect  the  sugar   today,”  stated  the  ISMA
                                                                                                         industry to clear the huge cane   release.
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