Government Fixes 18 LMT Monthly Sugar Quota for Sale in April 2020

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New Delhi, 26th March 2020: In a notification issued on the 26th day of March 2020, the food ministry has allocated 18 LMT monthly sugar quota for April to each of 545 mills in India.

The allocated quota for April 2020 is the same as April 2019’s month quota. In the previous month the Govt. allocated 21 LMT monthly sugar quota for March to each of 545 mills in India. Sugar millers nationwide have been striving hard to sell the allocated quota of sugar for March 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 23rd day of March 2020, the Department of Food & Public Distribution extended the time period for the monthly sale quota of sugar for March, 2020 by 15 days i.e. till 15th April, 2020 considering the unprecedented and unfortunate situation arisen due to the spread of COVID-19.

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 April 2020 been worked out on the basis of the following parameters:

The April 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 March 2020.

The notional month-end stock for the month of March 2020, has been worked out on the basis of month end stock for February, 2020 (as reported on P-II) adjusting the difference in the actual and the estimated production of February 2020 adding the estimated production of sugar in the month of March 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 February 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 April 2020.

Show Cause Notices (SCNs) was issued to the sugar mills for violation of stock holding order for the month of November 2019. Except 3 sugar mills, replies to SCNs have been received from other sugar mills which are under examination. The excess quantity sold by the said 3 sugar mills have been deducted from the proposed allocation in the month of April 2020.

To view the notification click here Monthly Release Order April 2020

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