SUGAR PRICES LIKELY TO GO UP AFTER JUN:CMIE

Sugar prices are likely to go up after June due to fear of rapid depletion of inventories, a leading economic think-tank has said. "The sugar prices will start rising again from June 2009 as the rapid depletion of inventories will build tremendous upward pressure on them, "Centre for Monitoring India Economy (CMIE) said in its latest report.

CMIE believes that the Government would be able to restrict the price rise for two more months through curb on hoarding and higher free releases of sugar. The report attributes depletion in inventories to the decline in sugar production for the second consecutive term. "The sharp fall in sugar production for the second consecutive year is going to lead to a rapid depletion of sugar inventories to historically low levels."

(The Financial Express:16.4.2009)