P?;ESS AOTE
:SVIE'YV OF SUG 53 POSITIOP
Since September 2, 1949, -!hen p 2 r t i a l c o n t r o l over the
movement and s e l c of sugar was imposed, there have. been two
' a l l o c ~ t i o n sof quota of sugar t o the provinces and j t a t e s
t o enable them i n d i r e c t l y t o c o n t r o l the market p ~ i c eof sugar
by d i s t r i b u t i n g the Central quota through t h e co-operative
I
agencgoor f a i r p r i c e shops.
t h e provinces and S t a t e s
These quotas have been reaching
5.3
instalrnnnts, with
3
view t o r e g u l a t e
1
I
the movement and use of the sugar s t o c k s i s s u e d by the C e n t r a l
G~ver~lment.
\
Sefora the Government of In.2.ia reimposed
control
on September 2, l a r g e q u a n t i t i e s of Sugar had been leaving
i h e f s c t o r i a s . 'Juring t h e months of hcember t o June.1949,
. .
?
the d e ~ p ~ t c h efrom
s
f a c t o r i e s i n U.P.
and B i h a r , the main
c e n t r e s of production, iu;re r e l a t a d t o ?-he
: seasonf s demsnd a n d
r o s e from 22 l a k 6 mounds i n March 1949 t o 25 l a k h maundr, i n
May 1949 and f e l l t o 20 l a k h maunds i n June a s monsoon a r r i v e d .
But owing t o rumours of shortage 328. of export from I n d i a , haavy
purchases were ma6e by merchsnt s st high premium f rorn "fat t o r i &
and the despatches r o s e i n July - t o 26 l a k h maunds and i n &gust
t o n c a r l y 33 l a k h maunds. . This l i f t only 15$ of t h i s seasonf s
production' with U.P.
and Dihsr f a c t o r i z s .
r i s i n g and t h e ~ove'rnmentof I n d i a d e c i d e d
i;:holssele p r i c e s bogen
$0
Bcal - $ ~ i t thh e
s i t u a t i o n , and a f t e r consulting r o p r ~ s e n t a t i v e sof th2 U.?.
3nd
Bihar Governments, tho Chairmen o f t h e LSugar Syndicate an2 o t h e r
i n t e r z s t s boncerne.6 a s t o t h e i r proposals f o r &ion,
-
,
.2sked.
tho P r o v i n c i a l Govarnrhonts, $0 corrmunicate t h e i r views on tha
Government of I q d i 8.. ' .s .t e n t s t i v e Csci sions. The U . P . ~ o v e r m e ; l t s
o r d e r on ~ u g u s t26, f r e e z i n g th? s:oeks v i t h the fsci:orios i n
I
*
& h e i r province was h e l p f u l i n consarvirig the f l s t de@zeW,~g
.. .., f a-c t o r y
I
- --- .-
f a c t o r y s?ocks.
Thz Government of I n d i a i s s u e d a s i m i l ~ r - f ? m ~ j ; ~ - -
* .
ordar f o r a l l f a c t o r i e s i n the country so -that a l l factories
-
waul$ be on the same l e v z l .
The r s s p o n s i b i l i t y f o r d l o c a t i o n
o f sugar s t o c k s from f a c t o r i e s t o p r o v i n c i a l and S t a t e Goverment s
having t h u s f a l l e n on the C e n t r a l Governnent, a l l l o c a l Governxents
were, simultaneously with f r e e z i n g o r d e r , wired t o i n d i c a t e
a u t h o r i t i e s and s t a t i o n s i n d i f f e r e n t d . i s c r i c t s where sugar
could be despa$ched by f a c t o r i e s , and t h e f a c t o r i e s were ordered
t o r a p o r t s t o c k s a v a i l a b l e with tharn.
Without such 2ata on ~n
a l l I n d .i a .b a s i s , d i f f e r e n t f a c t o r i z s could not be given s p e c i f i c
orders f o r
stocks distributed f'airly t o
l o c a l ~ o v e r r h e n t s , A weekt s time nas j u s t enough t o .secure
.
.
.
.
i n f o r m a t i o n from a l l over I n d i a 3nd nake preliminary a l l o c a t i o r ? ~
f i x i n g quotas f o r despatch f r o g each f a c t o r y in r d a t i o n t o i t s
s t o c k s , . X r i n g this i n t e r v a l , t h e r e were ample stock,s with t h e
t r a d e i n a l l provinces a s the despatches from f a c - t o r i e s had been cnu s u a l l y high i n July and August and. no crovince r e a l l y r a n any
,
r i s k o f a drying up of l o c a l s t o c k s .
QUOrI'EiS FO2 PdLOVTWCES
dxperience during the lssr; t h r e e weelcs h a s shown t h a t
wherever t h e l o c a l governrrant h a s bsen g i v e n due co-operation by
t h e wholesale t r a d e , p r i c e s hsve c o t r i s a n much.
T h i s i s [email protected]
by t h e p r s s e n t p r i c e l e v e l s i n C s l c u t t a , Bombay and Xafirss,
:\I1
provinoes and S t a t a s have bcen g i v e n t h e i r dua quota f r o n the
s t o c k s remaining with the f a c t o r i e s , t o supplement the q u a n t i t i e s
a l r e a d y with t h e t r a d e .
Thase quatas~will~
be under t h e d i r a c t
c o n t r d l bf t h e government concorn~fiand could be used f o r t h e
purpose f o r -:~hich they a r e meant, i . e . f o r r e t a i l s d e ?hrough
r e g u l a t e d channels t o lower t h e p r i c e s wherever t h e t r a d e has
r a i s e d them.'
1
&lost factories w i l l bd s t a r t i n g o g a r a t i o n s f o r t h e next
se:sonrs production i n
ezrlier.
t ~ ~o o n t h s ,somo p o s s i b i l y even
I t i s hoped t h a t t h e people w i l l ca-operate by not
.,. i n c r a z s i n g
i n c r e a s i n g t h e i r demand by nervous purchases i n the
f
. i n t e r v ~ lt o s t o r e up more t h a n their- needs, but on the
\
c o n t r s r y t r y t o reduce t h e i r purchases o f sugar during
the ~ o m i n gtwo months.
The temporary d i f f i c u l t y can be
1 .
succesSfully met by t h i s temporary .expedient.
$i ni st r y of &ri c u l t u r e
New ?lelhi, September 2 4 , . 1949.