National Commodity & Derivatives Exchange (NCDEX) is an online multi-commodity exchange offering contracts in 34 commodities, including sugar, which facilitates price discovery and price risk management. The recent increase in sugar prices is possibly on account of deficient monsoon leading to market's expectation of lower production in the ensuing 2012-13 sugar season and fluctuations in international sugar prices, etc.
It is the endeavour of the government to keep sugar prices stable through the policy of regulated release mechanism. To control rise in sugar prices, the government has released extra quotas as under:
(i) The unsold non-levy quota of about 2 lakh tonnes between April and June was allowed for sale in the open market upto August 14, 2012 on July 13, 2012;
(ii) Sugar mills have been directed to sell at least 70 per cent of the July-September quota by August 2012 vide order dated July 24, 2012;
(iii) Additional quota of 2.66 lakh tonnes has been released on July 27, 2012 to be sold off by August 31, 2012; and
(iv) Another additional quota of 4 lakh tonnes has been released on August 7, 2012 to be sold off by August 31, 2012.
This information was given by Prof K V Thomas, minister for consumer affairs, food and public distribution system, in a written reply to a question in the Rajya Sabha.
