Sugar stocks have been consistently falling from the beginning of July. Balrampur Chini has fallen by 22.71 per cent to end the today at Rs 105.5 while Bannari Amman Sugar has fallen by 22.87 per cent to close today at Rs 131.
Ravalgoan Sugar has fallen by 12.82 per cent to end the day today at its intra day high of Rs 2,380. Rajshree Sugar has fallen by over 30 per cent to finish ar Rs 9.8 today while Oudh Sugar Mills ended today at Rs 10.10 , down 25.46 per cent.
Bajaj Hindustan has fallen by 6.19 per cent to end today at Rs 60 while Ugar Sugar ended Rs 48.55 , down 34.34 per cent from the beginning of July. Dhampur Sugar finished at Rs 11.85, down 31.89 per cent.
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Sugar cooperatives in Maharashtra had approached the High Court in order to allow them to sell their surplus stocks bringing prices down to Rs 1000 -Rs1080 from Rs 1160-1170 per quintal.
This effect is still to percolate down and consumers are still paying about Rs 16 per kg in the retail market. This has put the financial health of the sugar industry in jeopardy. Till the beginning of October , sugar stocks with the Maharashtra cooperatives stood at 43,98 lakh tonnes out of a total estimated stock of 125 lakh tonnes.
Various parties have been in with discussion with the government to end this supply glut. All options like price fixation committees for deciding an MSP based on market conditions , statuory MSP for sugar as is the case for sugarcane in the state, etc are being looked at.
The larger cooperatives have gotten rid of their stocks with court orders. With the upcoming festive season, there is likely to be a surge in the demand for sugar, which can be met at lower than state prices for sugar, but for that the stocks that are languishing with the cooperatives.
Maharashtra is currently reeling under the burden of unsold sugar stock worth an estimated Rs 8500 crore. Indicated the total decontrol of sugar. Sugar is still classified as a essential commodity, the govenrment has to ensure its easy availibility at affordable prices.