DFPD allows to exchange export quantity of sugar with monthly sale quota between mills to maximise exports

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DFPD has been issuing a monthly release quota in respect of each sugar mill for sale sugar mills in the domestic market. In order to meet the domestic requirement of different states, the sugar is being transported from surplus state to deficient state which involves huge transportation cost which also results in increase of retail prices of sugar. Secondly many mills which have been allocated export quota do not export sugar as their mills are located far from domestic ports and exporting sugar from such states involves huge transportation and thus has an effect on their profit margin.

In order to facilitate mills to export maximum sugar from the country, to ensure maximum participation in export, to reduce transportation cost involvement involved in movement of sugar from one state to another for domestic consumption which will ultimately benefit the consumers, DFPD has decided to allow exchange of MAEQ quantity from the quantity of monthly release quota as under:

– Mills who do not wish to export the MAEQ Quantity (whole / partial) allocated to them vide DFPD order dated 31.12.2020 may exchange such MAEQ quantity with the monthly release quota of any other sugar mill which is willing to take the additional MAEQ quantity for export. For example, if a mill in Madhya Pradesh or Uttar Pradesh which is far away from the port does not wish to export its MAEQ due to higher transportation cost involved can exchange its MAEQ quantity with the monthly domestic release quantity of another mill located near the port.
This will save transportation cost (internal transport) involved in transportation sugar far flung states to the port for export, simultaneously it would save transportation cost involved in transportation of domestic sale sugar from one state to another.

– The sugar mills involved in such exchange of their MAEQ quantity and domestic monthly release are required to enter an agreement and submit it to DFPD for relocation of the MAEQ quantity as well as monthly release quantity.

– The export quantity exchanged with the monthly release quota (maximum quantity of white / refined sugar for domestic sale and dispatch during the month) can be adjusted by the end of sugar season 2020-21.

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