Chandigarh, May 1 (UNI) The Shiv Sena today urged the Centre to restore sugar dealer licensing, so as to get control on hording and subsequent artificial shortage of sugar.
Addressing a press conference here, Shiv Sena leader K L Gidwani said, '' The forward trading of sugar on NCDEX allows parties to hold any desired amount of stock for as long as he wishes. Thus, private parties with deep pockets horde the prices of essential commodities like sugar,which is witnessing a high price of Rs 22 per kg on NCDEX for June.'' They speculate on the prices by creating artificial shortge in the open market. This ensures fluctuation in price and the traders make good profit, he added.
Mr Gidwani, who is Convenor of Action Committee for Essential Commodities of Shiv Sena, said due to the heavy loss caused by this instability a trader in Wai in Satara district in Maharashtra had committed suicide.
To stop fluctuation and bring a permanent stability of price in the open market, the Government must bring back sugar dealer license with the stock and time limit restriction, thereby ensuring quantities move in the market and there will be no possibility of creating an artificial shortage, he added.
The Sugar Dealer License was lifted in 2002 as there was heavy production and there was no place to hold stock even in the godowns then.
With the changed situation now, Mr Gidwani said if the stocks are not moved to the market there will be an artificial shortage of sugar in the open market, thereby creating panic and price-rise of sugar.
He said the Government of India must increase the EMD (earnest money deposit) of purchase in the NCDEX from the current 10 per cent to a minimum of 20 per cent.
Alleging export of sugar besides speculation for the rise in prices, the Shiv Sena leader said " While I applaud the decision to export sugar, the Government must take adequate measures to ensure the price of sugar does not reach the sky that it is currently at".
He added, '' Export cannot be at the cost of the citizen's expense, domestic market must be given a priority.'' UNI VKJ OM HT1322
Addressing a press conference here, Shiv Sena leader K L Gidwani said, '' The forward trading of sugar on NCDEX allows parties to hold any desired amount of stock for as long as he wishes. Thus, private parties with deep pockets horde the prices of essential commodities like sugar,which is witnessing a high price of Rs 22 per kg on NCDEX for June.'' They speculate on the prices by creating artificial shortge in the open market. This ensures fluctuation in price and the traders make good profit, he added.
Mr Gidwani, who is Convenor of Action Committee for Essential Commodities of Shiv Sena, said due to the heavy loss caused by this instability a trader in Wai in Satara district in Maharashtra had committed suicide.
To stop fluctuation and bring a permanent stability of price in the open market, the Government must bring back sugar dealer license with the stock and time limit restriction, thereby ensuring quantities move in the market and there will be no possibility of creating an artificial shortage, he added.
The Sugar Dealer License was lifted in 2002 as there was heavy production and there was no place to hold stock even in the godowns then.
With the changed situation now, Mr Gidwani said if the stocks are not moved to the market there will be an artificial shortage of sugar in the open market, thereby creating panic and price-rise of sugar.
He said the Government of India must increase the EMD (earnest money deposit) of purchase in the NCDEX from the current 10 per cent to a minimum of 20 per cent.
Alleging export of sugar besides speculation for the rise in prices, the Shiv Sena leader said " While I applaud the decision to export sugar, the Government must take adequate measures to ensure the price of sugar does not reach the sky that it is currently at".
He added, '' Export cannot be at the cost of the citizen's expense, domestic market must be given a priority.'' UNI VKJ OM HT1322
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