Maharashtra sugar millers fear future trading investigation may pull down prices again

PUNE: The private sugar millers in largest sugar producer Maharashtra are worried about state government's decision to investigate alleged speculation in future trading and measures like stock checking by farmers' organisations, which the industry fears may result in pulling down the prices again.

"News about stock limit, stock checking and investigation of future trading leads to negative sentiments. We fear the sugar prices may fall and the industry may again go into huge losses," said Rohit Pawar, vice president of Western Indian Sugar Mills Association (WISMA) and CEO of Baramati Agro, belonging to the family of former union agriculture minister Sharad Pawar. WISMA has raised this issue with chief minister Devendra Fadanvis.

Pawar added that the mill level sugar prices,which had crossed Rs 30/kg, have now declined to Rs 29/kg as the sentiments have turned negative.

"The burden of repayment of the soft loan given by the government to the sugar mills last year, is on the sugar sale of current year, for which we want the prices to remain above Rs 30/kg. We have already sold the sugar of last year," he said.

After the future prices rose by nearly Rs 500/quintal in less than two months, mills had complained that traders were not buying sugar at the increased rates and were liquidating the stocks they had bought at lower rates.

The state government has announced that it will investigate into the allegations of speculation in futures trading of sugar on the exchanges.

Party workers of farmers' organisation Swabhimani Shetkari Sangathana barged on the sugar belonging to an MNC trade house, stored in a government wearhouse in Baramati near Pune from last three months.

"This sugar was purchased at Rs 24/kg and was being sold at Rs 32/kg after three months. This proves our claim about speculation," said Rajendra Dhavan, district president of the Sangathana.