SUGAR TRADERS DEMAND BAN ON FUTURESMumbai: Alarmed by the strident rise in sugar prices and fearing visits from food inspectors, traders have demanded a suspension of sutures trading in sugar. Belief is gaining ground that the latest price increase of Rs.250 a quintal in the wholesale market unwarranted given that the government has released sufficient quantity of free-sale sugar for April-June months and storage restrictions are already in place.
'Unbridled speculation'
The Bombay Sugar Merchants Association has attributed the latest price spurt to unbridled speculation in the commodity futures market and has demanded a suspension of trading in the exchanges. The association has expressed apprehension that sugar prices may further rise by Rs. 100-200 a quintal if immediate steps to curb speculation are not taken.
The association said sugar mills should be directed to sell the monthly released quantity within the specified time and buffer stocks should be unloaded in the market to douse the fire.
- Bureau
(The Hindu Business Line:9.4.2009)
