The Hindu : National : First sugar buffer stock to be dismantled

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Wednesday, Apr 02, 2008
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First sugar buffer stock to be dismantled

Gargi Parsai

NEW DELHI: The government on Tuesday decided to dismantle the first sugar buffer stock of 20 lakh tonnes and allowed sugar factories to sell the quantity in the domestic market.

This “floating stock” would be in addition to the monthly quota releases and sugar factories can sell this stock in the domestic market, without obtaining any release order, before September, when the sugar season starts.

This has been done to increase the availability in the domestic market, as well as to prevent the prices from rising. The stock was created in May.

At the same time, the government has decided to release 44 lakh tonnes of non-levy (free sale) sugar for the April-June quarter. For April, the quota released is 17 lakh tonnes. For May and June 27 lakh tonnes has been released.

In addition, a quantity of 1.87 lakh tonnes has been released under levy sugar for distribution in the Public Distribution System in April. Thus, the total sugar released in the month of April, is 18.87 lakh tonnes which would be sufficient to meet the internal demand.

According to official sources, the second buffer stock of 30 lakh tonnes would remain intact till July 31. So far this year, 18 lakh tonnes has been exported.

The production this year is expected to be about 267 lakh tonnes against 282 lakh tonnes last year.

Union Agriculture Minister Sharad Pawar on Tuesday said the changing dietary habits had fuelled higher demand for wheat. Rice-consuming States in the south and north-east were now asking for wheat supply under the PDS.

Based on information provided by the States, the prospects for wheat looked bright this year. “We will take care of the PDS.”

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