The government has asked sugar mills to offload stocks in excess of 37% of the total sugar available in the 2015-16 sugar season by end-September, and 24% by end-October. Also Read: Govt to impose sugar stock limit on mills to check hoardingThe broader issue is, of course, whether the government should interfere with sugar prices. Earlier, in April, this column had raised a red flag that rising sugar prices may force the government to intervene. A lower crop means farmers will ask for higher cane prices and they will cite higher sugar prices as a valid reason. Worse, with sugar prices having gained so much, the government may offer fewer sops to sugar mills.

Source: Mint September 07, 2016 03:22 UTC