Sugar body calls for suspension of futures trade

The Bombay Sugar Merchants' Association has demanded immediate suspension of trading in sugar futures owing to an unprecedented rise in prices.

The association, in a representation made to the government has said the price of sugar has gone up from Rs 1,290 a quintal in the last week of February to Rs 1,420 at present.

"This is an unprecedented increase. At no point in the last 50 years, the price in wholesale sugar market has risen with such speed," the association said.

According to the association, the surge in prices have taken place because of the highly speculative activities going on in the sugar futures exchanges.

Mukesh Kuvadia, Secretary of the association said the government has released adequate quantity of sugar for the month of March and thus the price of sugar actually should have remained steady or gone down.