Inflation In India: Government Cautious About Inflation
Inflation In India: Government cautious about inflation of essential commodities, the pressure created to reduce prices of edible oils.
The government is constantly taking precautions to control the inflation of essential commodities. The government is under pressure to reduce the prices of edible oils troubling the consumers.
Whereas the price of sugar has generally remained stable since last year. Adequate production and rising stocks have added to the concerns of the sugar industry.
But due to the increase in stock, the problems of the sugar industry increased.
Adequate availability of sugarcane for the upcoming crushing season starting from October 1 will also increase the sugar stock further.
Keeping in view the global demand and domestic market conditions, the Indian Sugar Mills Association (ISMA) has urged the government to further increase sugar exports.
A consumer ministry official said that the priority of the government, for the time being, is to keep inflation under control.
That is why the government is cautious about the price of edible oil, sugar, and other essential food items.
With the intervention of the government, there has been a decline of 9 percent in tomatoes and 29 percent in onions. Prices of all major commodities are reviewed daily at the national level.
On the other hand, every effort is being made to establish coordination between the consumer markets with the producer markets.
On the other hand, a different challenge has arisen before the sugar industry. Sugar remains stable at Rs 40-41 per kg under pressure from rising stocks.
Inflation In India: Government cautious. During the current sugar marketing year 2021-22, so far a total of 360 lakh tonnes of sugar has been produced in the country.
Crushing is still going on in some mills of Maharashtra. While the opening stock was 82 lakh tonnes. At present, the total stock of sugar has reached 442 lakh tonnes.
In comparison, the domestic consumption of sugar is estimated to be the highest ever at 275 lakh tonnes as against 2.65 lakh tonnes last year. About 100 lakh tonnes of sugar have also been exported.
After deducting this addition, the carryover stock of sugar will be left at 67 lakh tonnes at the start of the next crushing season.
For the first two-and-a-half months of the crushing season starting from October 1, the required stock will be 5.8 million tonnes.
Based on this gap between demand and supply of sugar, ISMA has repeatedly urged Union Food Minister Piyush Goyal and Agriculture Secretary Sudhanshu Pandey to increase the quota for additional sugar exports.
Their demand is for the export of 10 lakh tonnes of sugar.
According to sources, the government may allow the export of five to seven lakh tonnes of sugar depending on the global market and domestic requirements.
