ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Sugar- Short-Term Gains

Sugar- Short-Term Gains

 they represent, at least as a counter to the Gyakno's efforts. THE current sugar season began in October with prices in the free market at Rs 385 per quintal. The industry's propaganda about 'scarcity notwithstanding, prices declined to Rs 350 by February 1973. Though prices rose once again to Rs 365 towards the close of the month on expectations of an increase in excise duty, they declined to Rs 330 in March as the budget left sugar untouched, and are now around Rs 345. Normally, during the three summer months, March-May, which coincide with the marriage season, demand for sugar increases. Pressure on government from both industry and trade is strong during this period for greater- releases of sugar. But though during March-May 1970 government had released 11.93 lakh tonnes and in the same period of 1971 increased the quantity to 12.25 lakh tonnes, in 1972 it slashed the release for the summer season to 9.75 lakh tonnes and for March-May this year it has further reduced it to 8.45 lakh tonnes. Having earlier announced that it would not import the much cheaper sugar available, government was forced to cut monthly releases because production had meanwhile declined to 37 lakh tonnes in 1970-71 and again to 31 lakh tonnes in 1971-72. Regarding the current season there were apprehensions, voiced by the industry, that production would be 30 lakh tonnes only. Now, the industry has revised its estimates sizeably to 36 lakh tonnes, and by the end of March sugar production had evidently already crossed 33 lakh tonnes. Also, this season, 115 factories are working as against only 57 in the last season. Government has already announced the release for the eight months

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