Business IdeasGovt keeping watch on sugar prices: Sharma
Amidst sugar prices touching Rs 44 a kg in the retail market, the government today said it is keeping a watch on the prices.
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"Yes this issue has been engaging the attention of the Group of Ministers on food security," Commerce and Industry Minister Anand Sharma told reporters here.
Asked about possible export ban, Sharma said exports of the commodity are not taking place in any case.
Sharma is member of the GoM on food security, headed by Finance Minister Pranab Mukherjee.
Retail prices of sugar have shot up by Rs 5 to Rs 44 a kg in Delhi in the last one week and may rise further as wholesale rates today reached Rs 44.5 a kg.
Sugar prices have more than doubled from the Rs 21 level in the beginning of last year on concerns of production falling short of demand and firming global rates.
The prices have skyrocketed in the domestic market due to slump in production in 2008-09 season (October-September) and projection of shortfall even this season.
India is estimated to produce about 16 million tonnes of sugar in 2009-10 season, against 14.7 million tonnes in the last season. The annual requirement is 23 million tonnes.