Government Fixes 18.5 LMT Monthly Sugar Quota for Sale in June 2020

New Delhi, 29th May 2020: In a notification issued on the 29th day of May 2020, the food ministry has allocated 18.5 LMT monthly sugar quota for June to each of 546 mills in India.

The allocated quota for June 2020 is 3 LMT lesser than the quota allocated for sale in June 2019 which stood at 21.5 LMT. In the previous month the Govt. allocated 17 LMT quota for May 2020 to each of 545 mills in India. Sugar millers nationwide have been striving hard to sell the allocated quota of sugar for May 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.

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 June 2020 been worked out on the basis of the following parameters:
The June 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 May 2020.

The notional month-end stock for the month of May 2020, has been worked out on the basis of month end stock for April, 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 May 2020.

The difference in the actual and the estimated sugar sacrificed for producing ethanol with B heavy molasses/sugarcane juice/sugar syrup/sugar of April 2020 has been adjusted. Incentive in lieu of estimated sugar sacrificed for the month of May 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 June 2020.

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