The Hindu Business Line : Mumbai sugar merchants suggest cap on rates

THE Bombay Sugar Merchants' Association (BSMA) has advised its members not to sell sugar over Rs 20.25 per kg by levying price cap at the wholesale level.

This decision has been taken on Wednesday to provide smooth supply at reasonable rate and also to avoid shortage in the retail market.

"Traders have been told to release adequate supply to retailers. Also, the association has decided to put voluntary price cap of Rs 20.25 per kg at the wholesale level so the prices should not go beyond that level," Mr Ashok Jain, Secretary of Association, told Business Line.

"Fresh sugar inflows from major centres such as Kolhapur and Karad halted since January first as entire wholesale trade including sugar trade is observing bandh to protest levy of 10.02 per cent service tax on traders for transportation of goods," he said.

Total stock with traders at the Vashi market is reportedly about 15,000 bags (each of 100 kg) as against daily consumption of 60-70 tonnes for Mumbai city, according to traders.

"Looking at the current supply, there is no problem for at least next 10 days," a local dealer said.

Ready prices at Vashi wholesale market today fell by Rs 20-30 per quintal to Rs 1,946-1,958 for small grade and Rs 1,973-1,983 per quintal for medium grade, traders said.

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