The Hindu Business Line : TN co-op sugar federation to begin online trading

When contacted by Business Line, sources said the federation has initiated steps to commence online trading by mid-June or earlier. It has called for bids to develop software for online trading. Organisations that have been approved by the Centre for futures trading are eligible to submit bids.

With the Government moving towards the decontrol of the sugar industry, strong marketing is crucial to the interests of the sector. Further, with successive seasons of bumper production, the sugar holdings of the mills were swelling.

As of mid-April, the sugar stock available with the cooperative and public sector sugar mills was about 6 lakh tonnes, which they would have to shed stocks both in the domestic and export markets. This would require strengthening of their marketing structure, they said.

Sources said on-line visibility would boost the marketing prospects of the cooperative sugar mills.

Their market-base, as that of the other private sugar mills, has increased with the Centre lifting regulations and control on stock levels and marketing.

The Government has lifted the restrictions imposed on buying, selling, storage, transportation, distribution, disposal and usage or consumption of sugar.

With this order, the restrictions imposed by the State Government would also be lifted. Earlier, the sugar factories could sell only to licensed wholesale dealers who, in turn, were subject to stringent regulations.

Under the free marketing regime, anybody can procure sugar, either directly from the mills or from the trade, for use or forward trading.

This gave the cooperative sector an opportunity to reduce their stocks.

The cooperative mills in the State are looking to emulate the example of Andhra Pradesh which has implemented on-line trading systems, sources said.

The cooperative sugar federation has been taking steps to improve efficiencies of operation through enhanced production and productivity.

During 2002-03, about 70 per cent of the sugarcane under the cooperative mills' command area is expected to come under high-yielding varieties compared to about 50 per cent now.

The cooperative and public sector mills are expected to register about 2,25,000 acres during the 2002-03 season and crush about 74.5 lakh tonnes as against 70 lakh tonnes during the 2001-02 season.

The cumulative loss of the 19 mills in the cooperative and public sector was Rs 810.90 crore up to 2000-01. This is expected to increase to Rs 985.14 crore in 2001-02.

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