Food ministry announces revised methodology for calculation of monthly stock holding limit for sugar season 2021-22

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In a notification announced on the 30th day of Sept. 2021 the Department of Food & Public Distribution announced a revised methodology for calculation of monthly stock holding limit for sugar season 2021-22 in order to ensure that the monthly release quota is evenly distributed among mills/states across the country, from the month of October, 2021 onwards.

Following parameters will be taken into account for allocation of the maximum quantity of white/refined sugar to be sold by the sugar mills in the domestic market for every month:

The Stock holding limit for a month will be worked out on the basis of giving 100% weightage to the month end notional stock of the preceding month. The notional month-end stock for any month would be calculated on the basis of the previous month end stock reported in P-II, further adding the sugar lifted from sugar mills after 1st August, 2021 as per 4.3 Column of P-II and subtracting actual release of the preceding month of the month for which stock holding limit is being issued. Benefit on account of export would be given for sugar lifted beyond 1st August, 2021. Further, incentive in lieu of sugar sacrificed for producing ethanol would also be given to sugar mills. Currently, 50% incentive on sugar sacrificed is being given; however, from monthly release quota for October, 2021 and onwards, 100% incentive on sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar will be given. Detailed example in this regard for the month of October, 2021 is as under:

i. The October, 2021 Stock holding limit will be worked out on the basis of 100% weightage to the month end notional stock for the month of September, 2021.

ii. The notional month-end stock for the month of September, 2021 will be worked out on the basis of month end stock for August, 2021 (as reported in P-II), further adding the sugar lifted from sugar mills after 1st August, 2021 for export as per 4.3 Column of P-II and subtracting actual release for September, 2021. Benefit on account of export would be given for sugar lifted beyond 1st August, 2021.

Besides, incentive in lieu of sugar sacrificed for producing ethanol from B heavy molasses/sugarcane juice/sugar syrup/sugar would be given corresponding to the reported ethanol production for August, 2021. Currently, 50% incentive on sugar sacrificed is being given; however, from monthly release quota for October, 2021 and onwards, 100% incentive on sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar will be given

Similarly, domestic monthly release quota for subsequent months will be calculated. Another example for the month of March, 2022 is as under:

i. The March, 2022 Stock holding limit will be worked out on the basis of 100% weightage to the month end notional stock for the month of February, 2022.

ii. The notional month-end stock for the month of February, 2022 will be worked out on the basis of month end stock for January, 2022 (as reported in P-II), further adding the sugar lifted from sugar mills from 1st August, 2021 to 31st January, 2022 for export as per 4.3 Column of P-II and subtracting actual release for the month of February, 2022. Benefit on account of export would be given for sugar lifted after 1st August, 2021 to 31st January, 2022 as reported in P-II.

Besides, incentive in lieu of sugar sacrificed for producing ethanol from B heavy molasses/sugarcane juice/sugar syrup/sugar would be given corresponding to the reported ethanol production for January, 2022. 100% incentive on sugar sacrificed for producing ethanol from B-heavy molasses/sugarcane juice/sugar syrup/sugar will be given.

Click here to view the Notification

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