Government Fixes 17 LMT Monthly Sugar Quota for Sale in May 2020

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New Delhi, 29th April 2020: In a notification issued on the 29th day of April 2020, the food ministry has allocated 17 LMT monthly sugar quota for May to each of 545 mills in India.

The allocated quota for May 2020 is 3.99 LMT lesser than the quota allocated for sale in May 2019. In the previous month the Govt. allocated 18LMT for April 2020 to each of 545 mills in India. Sugar millers nationwide have been striving hard to sell the allocated quota of sugar for April 2020 with lack of demand in the market. The current unprecedented situation due to the outbreak of the coronavirus pandemic has also impacted the supply chain. In an order passed on 29th day of April 2020, the Department of Food & Public Distribution extended the time period for the monthly sale quota of sugar for April 2020 till 31st May 2020 considering the unprecedented and unfortunate situation arisen due to the spread of COVID-19. According to the latest report of National Federation of Cooperative Sugar Factories dated 28/04/2020, the estimated sugar production is 265 LMT and so far sugar mills across the nation have produced 257.05 LMT.

The group sugar producing companies having more than one sugar producing units may maintain the stock as defined in Para (1) of this Order, either unit wise or for the group as a whole. The sugar-mill wise Maximum quantity of white/refined sugar for domestic sale and dispatch during the month of May 2020 been worked out on the basis of the following parameters:

The May 2020 stock holding limit has been worked out on the basis of giving 100% weightage to the month end notional stock for the month of April 2020.

The notional month-end stock for the month of April 2020, has been worked out on the basis of month end stock for March, 2020 (as reported on P-II) adjusting the difference in the actual and the estimated production of March 2020 adding the estimated production of sugar in the month of April 2020 (received from sugar mills) further adding the sugar lifted from sugar mills for export as per 4.3 column P-II and subtracting actual release for March 2020.

The difference in the actual and the estimated sugar sacrificed for producing ethanol with B heavy molasses/sugarcane juice/sugar syrup/sugar of March 2020 has been adjusted. Incentive in lieu of estimated sugar sacrificed for the month of March 2020 (received from sugar mills) for producing ethanol from B heavy molasses/sugarcane juice/sugar syrup/sugar has been given for issuing stock holding limit Order for the month of May 2020.

To view the notification click here Monthly Release Order May 2020

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