SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Food Ministry moves Cabinet note on creating sugar buffer stock, fixing minimum ex-mill price

24 May 2018 Evaluate

In order to help cash-starved millers to clear their cane arrears which have surged to about Rs 22,000 crore, the Food Ministry has moved a draft Cabinet note on creating a sugar buffer stock of 3 million tonne and fixing a minimum ex-mill price. This situation has been created because of sharp fall in sugar prices and record production. It has prepared a draft cabinet note proposing 2-3 interventions.

The Ministry has proposed setting up of a buffer stock of up to 3 MT sugar, fixing of a minimum ex-mill sale price at around Rs 30 per kg, re-introducing the monthly release mechanism and imposing stock limits on mills by fixing quota for each mill. Currently, the average ex-mill price of sugar is in the range of Rs 25.60-26.22 per kg, below the cost of production.

As per the data, India’s sugar production has touched an all-time high of 31.6 million tonne (MT) so far in the 2017-18 season (October-September) on higher cane output, leading to a surge in cane arrears to Rs 22,000 crore. Earlier, the government had approved a production subsidy of Rs 5.5 per quintal for sugarcane farmers to help millers clear cane arrears.  


About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×