Govt Cites Stable Supply in Lifting Sugar Stock Reporting
Government Withdraws Sugar Stock Disclosure Order
The central government has withdrawn its September 2023 sugar stock disclosure order, initially requiring traders to report inventory levels weekly. Following a review, the Union Food Ministry stated that domestic sugar availability is sufficient to meet demand year-round. This decision comes as the government observes stable sugar production and comfortable supply levels.The Ministry will still monitor sugar prices, availability, and production closely, making any necessary policy adjustments if market conditions shift.
Background: Sugar Stock Disclosure Order
Initially, the Food Ministry required sugar mills and traders to report monthly sugar sales to track inventories held by wholesalers, retailers, and processors. The goal was to ensure an adequate sugar supply and fair pricing for consumers. The All India Sugar Trade Association, however, found the reporting requirement restrictive and had previously requested its removal. With this announcement, the stock disclosure requirement is officially discontinued.2024-25 Sugar Production and Consumption Projections
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) recently released estimates for the 2024-25 sugar season (October-September). Here’s a look at current supply and demand projections:With a carry-forward stock of 8,5 million tonnes, ISMA forecasts that sugar supply will meet projected demand, likely keeping prices steady through 2024-25.
Conclusion: What the Market Can Expect
The removal of the sugar stock disclosure requirement reflects confidence in sugar supply stability for the 2024-25 season. Consumers may see fewer price changes, and sugar industry stakeholders can focus on efficient inventory management. However, the Food Ministry’s periodic reviews ensure swift responses to any shifts in sugar prices or supply, maintaining market balance.Click here to reach our trading platfrom CMBroker
The government drops its sugar stock disclosure order due to comfortable domestic supply estimates. Learn how this affects