The government on Friday rejected claims that diversion of sugar for ethanol production was driving a sharp rise in the price of the sweetener and instead blamed the industry for jacking up prices despite the country having sufficient stock to meet domestic demand.
The Centre said it has asked States to take action against hoarding and black marketing of the sweetener and also start preparing for early start of the crushing season by mills, by around October 15. It is also considering reducing the stock that dealers can currently hold.
Briefing the media on sugar availability and prices, Food Secretary Sanjeev Chopra said the government has taken precautionary measures by allowing imports of 10 lakh tonnes of sugar by October 31 and imposing stock-holding limits on dealers as well as bulk consumers such as soft-drink and ice-cream makers.
